Telecom sector in stress because of new entrant and irrational spectrum charges

New Delhi Jan 30: Union Government has tabled the economic survey for the financial year 2017-18 on Monday. The Survey had pointed out that telecom sector is under severe stress.The Survey had added that "It is important to note that the telecom sector is going through a stress period with growing losses, debt pile, price war, reduced revenue and irrational spectrum costs."

Survey also highlighted that "A new entrant has disrupted the market with low-cost data services and the revenue of incumbent players has fallen. The crisis has also severely impacted investors, lenders, partners and vendors of these telecom companies."

Survey had also pointed that high spectrum costs are also a key factor for stress in telecom companies. The Survey hoped that New telecom policy would adress some of the issues of telecom sector and added that "the government was formulating a new telecom policy (NTP), where issues of regulatory and licensing frameworks impacting the sector, connectivity for all, quality of services, ease of doing business and absorption of new technologies including 5G and IoT will be addressed. "