Scrapping IUC And Tariff Hikes Might Help Telecom Operators Boost Revenue: Report

|

The telecom ministry has taken many steps to help revive the telecom sector. Now, it has been reported that there can be some unexpected changes in the industry in the coming days. However, the analyst believes that AGR will remain a key issue in the sector.

Scrapping IUC And Tariff Hikes Might Help Telecom Operators

 

"Green shoots of recovery are visible for the telecom sector, driven by one of the steepest tariff hikes announced by the telcos and deleveraging initiatives undertaken by them. Trai's decision on IUC (interconnect usage charge) and the consultation of floor price are positive," said Ankit Jain, assistant vice-president of corporate ratings at Icra was quoted by livemint.

Jain intimated that there are chances that the debt on the industry will come down, and the revenue will also improve in the next financial year. He also pointed out that AGR issues will also play an important role in 2020.

Notably, both Airtel and Vodafone-Idea have recently filed a review petition in the Supreme Court. The telecom operators are seeking some modifications on dues, as the Supreme Court wants them to pay Rs. 92,000 crore. Now, operators are looking for some relief from the Department of Telecom. On the other hand, Vodafone-Idea has cleared its stand on the issue and said the company will shut its operations from India if the government doesn't offer any relief to them.

"The year 2019 was the bottom of the trough for the sector and next year is expected to be better as ARPUs (average revenues per user) will improve. There is a little more stability on the regulatory front with IUC to stay for a year," said Rajan S. Mathews, director general at Cellular Operators Association of India was quoted by the newspaper.

Adding to that, "Given the broad implication of the Supreme Court ruling that has ensnared companies outside the telecom space, we hope the government will devise a suitable way out of the conundrum."

Most Read Articles
Best Mobiles in India

Read More About: reliance jio airtel vodafone idea

Best Phones

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Yes No
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more
X