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

By June 22nd, 2017 AT 8:04 PM

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.

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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Kunal
Kunal

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
Kunal

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
Girish Gowda

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.

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