Govt to Take Corrective Steps for Ensuring Orderly Growth in Telecom Sector: Manoj Sinha

India’s telecom minister Manoj Sinha on Thursday said that the government would take corrective steps for ensuring orderly growth in the sector in terms of services to the common man including in rural areas. Sinha’s comments come after his meeting with leading telecom operators, including Bharti Airtel, Idea Cellular, Reliance Jio, Reliance Communications and Telenor on the financial stress in the sector.

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Sinha’s meeting follows last week’s meetings between the inter-ministerial group panel (IMG) and telecom operators. IMG, which has representation from telecom, finance and revenue departments, also met with banks and state-run telcos BSNL and MTNL.

Sinha told telcos that the inter-ministerial group (IMG) looking into the financial issues of the debt-laden telecom sector would submit its report to the government shortly. The IMG will recommend policy reforms and strategic interventions.

The minister said that each telecom operator had given a detailed roadmap of suggestions for the betterment of the sector.

“IMG is examining systematic issues affecting prepayment ability and viability, and they will submit their report soon…The ministry has assured them that for the sector’s orderly growth and for uninterrupted services to the common man, the government will take necessary steps soon,” Sinha said.

Telecom operators in India have been impacted by a price war introduced by the entry of Reliance Jio. The intense competition had led to a fall in revenues and profitability of all the telecom operators.

High levels of debt in telecom companies have also raised concerns about their ability to repay.

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4 Comments on "Govt to Take Corrective Steps for Ensuring Orderly Growth in Telecom Sector: Manoj Sinha"

 

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Kunal
June 24, 2017 1:15 am 1:15 AM

Avoid will make noises as slowly jio will start eating their market share along with the revenue .

Jio is dictating , as they have invested in the latest technology & are reaping the benefits.

Government should not intervene.

Kunal
June 23, 2017 8:30 pm 8:30 PM

A bit off topic – As per airtel complain to CCI, Jio is having total 2.43 lakhs 4g bts running which comprises of total 66% of the total 4g bts No’s of all players together & 18% of the total bts of all technologies in India.
Hence Jio is a dominant player in the industry & controlling the competition . Jio should stop free voice & daily data packs .

CCI has dismissed Airtel’s complain & favoured Jio .

Girish Gowda
June 23, 2017 9:31 pm 9:31 PM

Nonsense. What favouritism? AVOID cartel has 90% monopoly on 2G, 3G connections. They are the dominant players. JIO only has 10 crore 4G subscribers (and many have double sims). TRAI and DOT also supported the cartel looting us previously. Now they are trying to be impartial since everyone in the country has their eyes on them.

Ashish
June 23, 2017 11:10 am 11:10 AM

These telecom companies who has made huge profits in the past are now crying, obviously the current scenario is not sustanable, the companies are under financial stress and something needs to we worked out soon, or else these shameless companies will start delcaring bankruptcy which in turn will effect Banks and Stock Market, obviously there will be job layoffs.
Its the common man who is enjoying free service will pay Heavily for it later.

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