The situation is hard in India’s Telecom sector. It is collapsing due to high taxes by government and tough competition among companies. It is now a matter of survival. They just can’t compete with each other at the prices they are offering these plans. Most of the companies are in big losses right now, and the further government has just won the cases against companies on ‘What comes under the revenue of companies for what they had to pay taxes on ?’.
The government won, and huge taxes were imposed was on Vodafone +Idea and Airtel and quit less on JIO (because JIO has just come last year so not used that much of so-called revenue).
- In this tough time for companies, Airtel Chairman Sunil Mittal recently said in its conference that JIO had unlimited access to ‘ Finance,’ which is quite true because if JIO is in the loss, they can hold a little longer to become the only company in Telecom sector in India. Afterward, it will be the Monopoly that everyone has to choose their Network, but other companies can’t burden that many losses and eventually will collapse in burden if taxes and losses.
So Sunil Mittal is asking government aid so that at least three companies remain in the market so that there be a fair price for customers due to competition. If not, then there will just be one company, and it will dominate the price as per will.
In order to save the sector, Mittal suggests setting floor tariffs as soon as possible so that ARPU can rise to at least ₹200 initially — and ₹300 in the future. The situation is critical because private companies are approaching the government for aid.
Other companies are joining..
Just not Airtel chairman, Vodafone CEO Nick Read, said: “If you don’t get the remedies being suggested, the situation is critical,”
5G Spectrum Auction
5G spectrum auction is going to withing this financial year, and with companies at burdens up to ₹2 lakh crores right now due to tax and loss in revenue, their burden is just going just to increase.