The government will hold detailed discussion with the financially stressed telecom industry on challenges faced by them and will work on addressing outstanding issues, telecom minister Ravi Shankar Prasad said on Monday.
The comments assume significance as the telecom industry, despite witnessing an unprecedented growth in voice and data usage, has been battling financial stress with eroding profitability and falling revenues due to stifling competition.
“I will hold consultation with the telecom industry to understand their issues and challenges, and we will work towards addressing those issues,” Prasad said in Delhi.
The telecom industry is burdened with staggering debt levels amid cut-throat competition that only intensified after Reliance Industries Ltd.'s telecom arm Reliance Jio Infocomm Ltd. entered the arena in 2016.
Reliance Jio's disruptive offerings forced incumbents Bharti Airtel Ltd. and Vodafone Idea Ltd. to slash rates, affecting their profit margins. Since Reliance Jio's launch, rivals have either merged, resorted to acquisitions or simply folded up.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
