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Telecom: CoS to submit its report on financial stress

By IndianMandarins- 30 Oct 2019


Like banking sector, telecom sector too has become Achilles’ heel of the government as Cabinet Secretary Rajiv Gauba headed Committee of Secretaries will review the financial stress on the telecom sector following the SC ruling making an additional burden of Rs 1.3 crore on the sector.

The CoS is expected to meet soon and submit its recommendations. The Cabinet Secretary would examine every aspect and suggest measures to mitigate the financial stress being faced by the telecom industry.

A reference is being made to the telecom regulator to make viable pricing for voice and data tariff so as to curb further revenue erosion of the incumbents. The development has come after the representations have been made by telecom carriers on the declining financial health of the sector in the wake of upcoming spectrum auction and fifth-generation or 5G technology-backed roadmap.

Service providers are already sitting on a cumulative debt of nearly Rs 8 lakh crore. The average revenue per user (ARPU) per month has declined from Rs 174 in the year 2014-15 to Rs 113 in 2018-19.

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