Bharti Airtel Reportedly Seeks Deferred Spectrum Payment, Lower Taxes

Bharti Airtel, India’s leading telecom operator, has reportedly sought relief from the government in terms of lower taxes and deferred payment for spectrum purchase, following plunging profits and lower realisations from both voice and data operations due to intense competition triggered by Reliance Jio’s entry with disruptive pricing.

Bharti Airtel reported 72% decline in profit for the fourth quarter of 2016-17. The telco’s India and South Asia CEO Gopal Vittal told analysts, “We need some rationalisation as the (telecom) industry is under stress.”

Vittal also said that Bharti Airtel will continue to maintain an aggressive posturing to counter the Jio onslaught, despite pressure on profitability.

Vivo V3

Indian government recently formed inter-ministerial panel to examine the telecom sector’s financial woes. The sector has a debt of Rs 4.6 lakh crore.

The country’s telecom sector is heavily taxed, Vittal said, adding that the levies like licence fee, spectrum usage charges, and service taxes add up to a very substantial number. He further said that some of these issues would come as a relief to the telecom industry.

The Sunil Mittal-led telecom operator said that a healthy telecom sector will form the bedrock of economic growth, which can be served through a robust data network. It is hoping that a “prudent view” will be taken on various issues.

Airtel’s net profit stood at Rs 373 crore in the quarter which ended on March 31, against net profit of Rs 504 crore in the previous quarter.

The telco’s revenue fell over 12% to Rs 21,935 crore on a yearly basis. India now contributes around 78% of overall revenue. It had nearly 274 million mobile subscribers, up 2.9% sequentially.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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lalit
lalit

TT guru’s can you guys tell me “how much idea or airtel get a 1GB 3G?, they sell it to us at 150 INR”. I am curious to know.

Sudharsan
Sudharsan

All these days they kept fooling us making money and they still they maintain the same price tag the day they introduced 3G and little higher now Rs. 200/- with All hidden agenda in thier tariffs. Now they want to fool government…

Love Airtel
Love Airtel

The cost is not limited to just data. What about the spectrum fee, cost of towers and switching networks, the employee salaries and so on?

Kaushik
Kaushik

Not employee salary but rather MD/CEO salary. Come on, you know very well how much money bigwigs guzzle.

Manish
Manish

All companies are paying for it. Airtel is looting customers. When number of customers risen much & Airtel didn’t upgrade much, it should pay for its mistake. If you have soft corner for Airtel, then use their network and pay huge price. Public money can’t go to Airtel.

DUANE
DUANE

Are incapable of understanding that there is a lot of internal costs which, if not passed onto the customer will hinder overall growth of the organisation and sector as a whole. This is what is happening to the once-glorious Indian telecom sector.

lalit
lalit

Our DOT is well aware of the under-reporting revenue these telecom operators are doing,,,they will obviously not lower the pricing of the spectrum.

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