Inside the battle to save India’s telcos
- A relief package is in the works, but any lasting solution will need hard decisions on cut-throat pricing in the industry
- Investors are unlikely to commit more capital unless there is clarity on the relief package and the government’s stance on pricing, say analysts
For years, the telecom industry helped successive governments line up their coffers. Now, things have come full circle, with the Prime Minister Narendra Modi-led government working on a relief package for the industry. While the exact nature of the relief package is still being worked out, reports suggest there are four options on the table: a reduction in license fees from the current level of 8% of adjusted gross revenues (AGR); a waiver of penalties and interest on past dues; a reduction in interest rates to market-linked rates; and a moratorium on dues.
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