Bloodbath in Telecom Still Continues; Only New Entrant Can Stop It: Bharti’s Sunil Mittal

Bharti Group chairman Sunil Bharti Mittal said that the bloodbath in the Indian telecom industry is continuing and margins for all telecom operators are under pressure. Mittal told Hindu Business Line that “there will be some let-up in the next 6-8 months because ultimately three operators will be left.”

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Sunil Mittal

In a separate interview with the Times of India, he said that the sector would remain in the turmoil until the newcomer [Reliance Jio] signals peace. “It’s up to him. He has a strong balance sheet, but we are equally determined to stay at number one position. Maybe March 2018, or surely by March 2019, it has to settle down with three operators,” he said.

The telecom czar also urged the Indian government to not impose spectrum usage charge and licence fee on the auctioned spectrum. “They should be benign if not zero. Why would you want to sell and then rent? Other (demands) are right of way and sighting of towers because, in State governments/municipalities, there are still a lot of problems. The Centre is very supportive, but in States, there is no law/policy to smoothen these problems. Finally, make spectrum more affordable,” he told Business Line.

Mittal also urged the government to lower the price for the super premium 700 MHz band. “The price was absolutely out of line (last time), and that is why nobody bought it. I think it should be much lower than that. I think all spectrum must go down, all bands must go down,” he was quoted as saying.