Entry of Reliance Jio has shaken up the Indian mobile market as there has been a major drop in call and data rates. This has resulted in steep drop in revenues and profits of all incumbent operators. Now the mobile operators are seeking Department of Telecom’s intervention in dealing with this “financial stress”. How will the government rescue mobile operators is anybody’s guess now…

NEW DELHI, JUNE 22, 2017: “We will not let the Indian telecom industry die” was the message that Telecom Minister Manoj Sinha gave to top mobile operators who met him at Sanchar Bhawan on Thursday to discuss industry’s current scenario and raise their concern over financial stress companies are facing due to falling revenues and margins.

“We are waiting for the Inter-Ministerial Group’s (IMG) report, which will be submitted very soon…the government will take corrective steps to ensure orderly growth of the sector and that no inconvenience is caused to the common man. We will ensure that this industry does not die,” Mr. Sinha told journalists after the meeting where bankers from State Bank of India were also present apart from top bosses of Bharti Airtel, Idea Cellular, Reliance Jio, Reliance Communications and Telenor.

Significantly, this meeting comes a week after the week-long deliberations that the IMG, comprising telecom and finance officials, had with all top telecom companies and some major banks having exposure in the telecom sector.

“This was the last meeting in the series of meetings which the DoT had with telecom companies…Now the ministry will take a decision once the IMG report is submitted,” the Minister added.

DoT source said the meeting revolved around issues related to finances with the telecom operators highlighting the issue of declining revenues which could result in problems in servicing debt. They also said telecom sector needed investments in networks for proliferation of data to support government’s Digital India programme through Internet penetration in rural areas.They urged the government to step in to address their financial problems. The sector has a debt of around Rs.4.6 lakh crore. The industry has also been demanding cuts in levies and taxes.

Those who took part in the meeting included Bharti Airtel Chairman Sunil Mittal, Tata Sons non-executive Director Ishaat Hussain, Reliance ADAG Group President A N Sethuraman, Reliance Jio Director Mahendra Nahata, Idea Cellular Managing Director Himanshu Kapania, and Telenor Asia Head Morten Sorby.

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