Telecom firms to meet Manoj Sinha on financial stress

Telecom firms to meet Manoj Sinha on financial stress

Business

Industry majors Anil Ambani and Sunil Bharti Mittal along with various telecom giants will have a meeting with Manoj Sinha, the Communications Minister, this week to talk about the financial challenges being faced by the industry.

The meeting takes place just after an inter-ministerial association had a dialogue with all telecom firms on the measures and financial stress of the industry that can be taken to simplify the situation.

Among others, it will be attended by Himanshu Kapania, Idea Cellular Managing Director; Ishaat Hussain, Tata Sons Director; and Mahendra Nahata, Reliance Jio Infocomm Board Member sources claimed. Aruna Sundararajan, the Telecom Secretary, will also attend, sources stated.

Telecom firms to meet Manoj Sinha on financial stress

Last week, Jio had given the financial pressure in the telecom industry to existing players such as Idea and Airtel by investing heavily in unrelated sectors and running businesses on debt. Jio supposed that the current players had been unenthusiastic in infusing equity and therefore the economic pressure is their self-made creation.

The current players, however, had hit back claiming the existing charge for call connect (or Charges for Interconnection Usage) of 14 Paise per Minute is below cost and requires to be corrected to avoid voracious voice pricing atmosphere.

The country’s biggest telecom firm Bharti Airtel had blamed Jio of voracious pricing and claimed that operators should be given more money for calls ending on their networks under the right to keep hold of users via incentives.

The big operators had also been verbal in one voice on lowering the levies such as spectrum usage charges, license fee, and Good and Service Tax. They also wanted an expansion on delayed spectrum problems, meaning that the quantity they offer for radio waves must be billed over a longer time frame.

Quoting Rs 4.6 Lakh Crore growing debt gazing the sector, the current players have made a case for critical relief methods such as expansion on delayed spectrum problems and slash in taxes.

Telecom Regulatory Authority of India also had a meeting with the telecom firms last week, where Idea Cellular proposed obligation of a least amount of floor price for data and voice services.

Well, the competition in the telecom sector is increasing day by day and is getting worse. For now, let us wait and watch if meeting with Manoj Sinha, the Communications Minister, will help solve the problems such as expansion on delayed spectrum problems and slash in taxes of telecom companies

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