Manoj Sinha, the Telecom minister, claimed that the rivalry amid market leader Bharti Airtel and Reliance Jio Infocomm is not an issue of worry for the government and expected the two behemoths might operate jointly for Digital India.
The government will interfere if essential to make certain the pressure-laden telecom segment survive, Sinha claimed to the media here last week at the India Mobile Congress.
“The country and government are not worried about the competition or rivalry. It is a business they are carrying out for Digital India, I expect that both majors will work jointly,” Sinha claimed to the media. “The government is conscious of the pressure in the industry. Previously also we have interfered and if required we will do so one more time. We will make certain that the industry survives.”
The entry of Jio last September with low-priced data and free voice forced contenders to slash costs sharply to keep users, resulting in stress on their profit and revenue. The industry is already loaded with loan of around Rs 5 Lakh Crore and many providers have asked for relief actions and the intervention of government to ease their economic pains.
An IMG (inter-ministerial group) set up to take into consideration their dilemmas had recommended that payment for spectrum be postponed over 16 Years as an alternative to 10 Years and that interest on their taxes be reduced. On the other hand, the biggest decision-making body in the ministry, the Telecom Commission, ordered the IMG to return with methods to give additional relief to the industry.
The minister claimed that telecom firms are set to make income of $38.25 Billion by the end of this year, posting a mean yearly development rate of 5.2% from 2014, as more users buy handsets and use greater amount of data.
Ecommerce market of India is anticipated to develop 2.8x to $125 Billion by the end 2021, boosted by mobile handsets, Sinha claimed. Spending in the telecom industry have increased more than 3x over the last 4 Years and telecom providers in 15 Months have set up more than 250,000 base stations.