Telecom czar Sunil Mittal on Thursday said the industry is under tremendous stress and hoped the government will ensure that India's digital dream remains intact through the provision of at least three operators.
Mittal acknowledged that telecom tariffs need to go up and that Airtel would "not hesitate" in this regard, but was quick to add that it cannot be done "unilaterally".
"To say telecom industry is in a bit of trouble is actually an understatement. It is in a tremendous amount of stress. I hope the Government, the authorities, and Telecom Department focus on this issue and ensure India's digital dream remains intact through the provision of at least three operators," Bharti Airtel Chairman Mittal said.
He was speaking to reporters at a virtual event of OneWeb, a satellite communications company led by Bharti Global and the UK government.
Mittal said Bharti Airtel had raised funds timely and adequately, through equity and bonds, and asserted that the company is strongly positioned to serve the market in coming years.
"We never went into the woods at all. We are strong a company, many a time we are underestimated in our resolve," Mittal added.
He conceded that the last 5-6 years had been brutal and pointed out that the results are for all to see.
"Ten operators gone out of business, two merged together...gasping for breath right now," he said.
The industry needs to be healthy for embarking on 5G services, and to deliver on India's digital dream, he said.
Asked if the company will look at raising tariffs, Mittal said, "We will not hesitate to do it, but it can't be done unilaterally".
"How long can you keep on killing each other, the point is when you have a return on capital, even by the best operator, at low single-digit and most of them struggling....I am not saying ...raising tariffs always sounds bad...just bring it back to where it was...enjoy 15 times consumption, but at least come back to old tariffs," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Telecom industry in trouble is an understatement: Airtels Sunil Mittal - Business Standard
Read More
No comments:
Post a Comment