INSUBCONTINENT EXCLUSIVE:
Kolkata: A combination of measures from the telecom regulator such as the year-long deferment of zero-interconnect usage charges (IUC)
regime and a potential floor price for voice and data services are veritable lifelines that could potentially improve financial viability
face statutory dues of Rs 53,039 crore and Rs 35,586 crore respectively, which they need to pay up in just over a month from now
Analysts added that these steps will also help the telcos attract investments to help with the dues.
Postponing of the zero-IUC deadline,
analysts said, would offer immediate relief to Vodafone Idea and Airtel by way of improved cash flows, in turn, boosting their operating
if the regulator had stuck to the original January 1, 2020, interconnect charges phaseout deadline.
Analysts said floor pricing, if
approved, will be a long overdue step that could particularly help prevent the likes of Vodafone Idea slipping into bankruptcy
the telecom industry, and would largely be on the lines of the concept of reasonable rate of return allowed in the past to private power
regulatory intervention was required to raise the tariffs to first ?200 per person each month and then to ?300, a move which would help the
battered telecom sector become viable.
The Cellular Operators Association of India (COAI), which represents Airtel, Voda Idea and Jio, has
added that the moves would help in attracting big-ticket investments.
Goldman Sachs said setting up of floor tariffs, even if somewhat below
stakeholder views on whether it should set a floor and ceiling for voice and data tariffs, even while terming the proposal
anti-consumer.
Jefferies said any floor price set by Trai would be the first instance of the government setting a minimum price, which could
lead to similar requests from other sectors
three telcos.
Airtel, Voda Idea and Jio increased their bundled prepaid tariffs by 14-33% in early December