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BSNL Set to Outsource Network Maintenance and Customer Services for Business Growth
PUBG Mobile and PUBG Mobile Lite Banned by IT Ministry in India
Analysts Expect Telecom Industry Tariff Hikes to be Imminent
Zee Plex Pay-Per-View Movie Service Launched, Available on Several DTH Platforms
Apple and Google to Help People With COVID-19 Exposure Notification Feature
Xiaomi Redmi 9A Launches in India: Offers Helio G25 SoC and 5000mAh Battery at Rs 6,799
Netflix Makes its Debut on JioFiber, Upgrade Options Enabled
Poco M2 India Launch Set for September 8
Rs 999 Broadband Plan from JioFiber and Airtel Xstream Fiber Compared
Relatively Shorter Payment Timeframe for AGR Dues Can Have an Impact on Industry Structure: ICRA

BSNL Set to Outsource Network Maintenance and Customer Services for Business Growth

Posted: 02 Sep 2020 07:32 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/bsnl-network-maintenance-services-outsource/294403/, BSNL Set to Outsource Network Maintenance and Customer Services for Business Growth

Bharat Sanchar Nigam Limited (BSNL) is set to outsource its network maintenance and customer services to keep up with the current "market trends and business requirements." The development was shared by the BSNL general manager in a letter to the chief general managers across the BSNL Territorial circles on August 27, 2020. According to the letter, the outsourcing model has turned into a "necessity for business growth." It has been said that a new unit has been proposed under the BSNL marketing department to "look into the exclusive work of Partnership Management."

BSNL to Outsource Network Maintenance and Customer Services

The letter highlights that the Partnership Management unit will be responsible for multiple parameters such as dealing with "network maintenance, augmentation and customer delivery through franchise or business partners."

Further, the Partnership Management is said to be tasked with facilitating better coordination and support among franchise and partners with an "aim to create a better service delivery."

Additionally, it has been said that there is a need for BSNL to "latch onto the digital platform for marketing and to harness the activities for business growth." The letter highlights that a new unit under the BSNL marketing department is the "need of the hour" to "create new business opportunities related to digital and IT based solutions and services."

The digital marketing managers at BSNL are set to be in charge of managing marketing campaigns such as promoting company's brands, products and services through digital platforms. Crucially, the digital marketing managers are set to be tasked with "planning campaigns" and also "identifying trends." The development comes alongside BSNL consolidating its business areas across India and restructuring its corporate structure.

BSNL Consolidates Business Areas, Restructures Corporate Structure

The operator is said to have reduced its business areas from 198 to 158 based on parameters such as number of connections and business potential.

It is said that the Business Areas in BSNL primarily serve to be accountable for all business related activities including planning and execution along with "better customer services delivery.” The general manager of a BSNL Business Area is responsible for multiple consumer parameters such as sales, marketing, network expansion, upgradation and maintenance.

In early 2020, BSNL kickstarted its process to consolidate Business Areas across India due to reduced manpower following the implementation of the voluntary retirement scheme (VRS).

Under the revised structure announced on August 27, 2020, the operator is said to have "centralised" the consumer related activities such as network planning and works related to business development.

Crucially, the operator is said to have combined network planning and operation of Consumer Fixed Access and consumer mobility into one single unit under the revised structure. The consumer fixed access unit primarily looks into the wireline and broadband business while the consumer mobility vertical taps into the mobile and other wireless business.

Original article: BSNL Set to Outsource Network Maintenance and Customer Services for Business Growth

PUBG Mobile and PUBG Mobile Lite Banned by IT Ministry in India

Posted: 02 Sep 2020 05:36 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/pubg-mobile-lite-apps-banned-india/294407/, PUBG Mobile and PUBG Mobile Lite Banned by IT Ministry in India

In what could be a major blow to Tencent Games, the IT Ministry has banned PUBG Mobile and PUBG Mobile Lite games in India. Including the two popular games, the IT Ministry also banned 116 other apps. In recent times, we have seen the Indian government banning 59 apps, including TikTok. Some other apps included in the list are APUS Launcher Pro, ShareSave by Xiaomi, Baidu, Ludo World, AppLock and so on. It will be interesting to see how Tencent Games reacts to this ban from the Indian government.

Tencent Games Faces Major Blow as PUBG Gets Banned in India

The press release from IT Ministry states the 118 apps which were banned today are “prejudicial to sovereignty and integrity of India, Defence of India, Security of State and Public Order." PUBG Mobile has been on the rise in recent times and the company was even preparing for the launch its most significant update yet with Erangel 2.0 map on September 8. The ban on PUBG Mobile will have a major impact on Indian Esports growth.

In the coming days, we might see Tencent Games appealing the ban of PUBG Mobile and PUBG Mobile Lite apps in the country. However, as of filing this article, Tencent Games is yet to respond to the ban from the government. With PUBG Mobile getting banned in India, we might see Call of Duty Mobile and Free Fire gaining some momentum, and it will also be interesting to see how esports move forward without PUBG Mobile.

Some other popular apps banned by the government are ShareSave by Xiaomi, CamCard, Tencent Weiyun, Arena of Valour, Baidu, Cut Cut, Rise of Kingdoms. Another Xiaomi apps- ShareSave by Xiaomi has also been banned by the government. In the past, we have seen a couple of Xiaomi apps like the Mi Browser, Mi Browser Pro, Mi Community and Mi Video Call getting banned in India. ShareSave by Xiaomi allows users to purchase products from the Chinese market at affordable prices.

Original article: PUBG Mobile and PUBG Mobile Lite Banned by IT Ministry in India

Analysts Expect Telecom Industry Tariff Hikes to be Imminent

Posted: 02 Sep 2020 04:13 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/analysts-telecom-industry-tariff-hike/294373/, Analysts Expect Telecom Industry Tariff Hikes to be Imminent

Bharti Airtel, the second largest telecom operator in India is expected to manage its AGR payment dues with no tariff hikes, Motilal Oswal, an Indian diversified financial services firm said in a research report. The firm's report released on Tuesday reflects the Supreme Court verdict on the adjusted gross revenue (AGR) case. The apex court on Tuesday allowed a 10-year repayment period for the AGR liability with the operators required to pay 10% total dues as upfront payment by March 31, 2021. Motilal Oswal in its report said that the "silver lining" for the telecom operators is that the Supreme Court did not pass "adverse verdict for the insolvent" operators. The apex court left it to the National Company Law Tribunal (NCLT) to make a decision on the insolvent operators who sold a part of the spectrum to Reliance Jio and Airtel.

Vodafone Requires "Sizeable Price and Capital Infusion" to Secure its Long-Term Future

Motilal Oswal said that Airtel would have to pay Rs 4500 crores by March 31, 2021 and Rs 3400 crores annually for the next 10 years. Further, it was said that Vodafone Idea would have to shell out Rs 5800 crores by March 31, 2021 and Rs 6600 crore annually for the next 10 years.

The firm in its report said that Vodafone Idea is in a "precarious situation" following the AGR verdict with its net debt touching Rs 150,000 crore. Motilal Oswal said that Vodafone Idea "could manage the current fiscal" with payments from multiple parties including Vodafone Group and Bharti Infratel. It has to be noted that Bharti Infratel on Tuesday said that it is moving ahead with the completion of the merger between Indus and Infratel. The development would result in Vodafone Idea selling its 11.15% stake in Indus Towers for approximately Rs 4000 crores.

However, Motilal Oswal said that Vodafone Idea requires "sizeable price hike and capital infusion" to secure its long-term future.

ICICI Direct Research in its report also said that Vodafone Idea will "find it difficult to meet the demand of annuity payment." The company said that Vodafone Idea has "already been plagued by cash burns" and that the operator requires "immediate capital infusion" apart from tariff hikes to bridge the cash gap.

Vodafone Idea Requires "Massive" ARPU Increase

While telecom operators could still file review petitions on the payment timelines as highlighted by Abhishek Manu Singhvi, Counsel for Airtel, analysts say "noise for tariff hike" will grow.

CARE Ratings, a company that offers credit rating services, in its report on Tuesday said that the telecom industry will need higher average revenue per user (ARPU) from the existing levels. The firm said that industry ARPU is "estimated" at Rs 82 in the June 2020 quarter and that the operators needs higher ARPU to pay the AGR dues in the 10-year timeline.

"This ARPU is much lower than the average ARPU of Rs 124 during FY16 when Reliance Jio had not entered the telecom market," CARE Ratings, said in a research report.

Airtel in its first quarter earnings call for the period ended June 30, 2020 said that its APRU increased to Rs 157 from Rs 154 in the previous quarter. However, Gopal Vittal, managing director and CEO of Bharti Airtel said that the company needs its ARPU to eventually hit the Rs 300 mark.

"We continue to believe that ARPUs need to move up to 200 and eventually to 300 for a sustainable business model," Vittal said.

Motilal Oswal said that the balance sheets of both Vodafone Idea and Airtel would weaken with the verdict delivered by the Supreme Court. The firm said that Vodafone Idea would require "massive" Rs 110 cumulative ARPU increase in the upcoming financial years to "manage its operations sustainably."

"We believe that with the Smartphone market largely settled and prevailing low ARPUs, there is a strong case for a price hike," Motilal Oswal said in its research report. "However, given the challenging economic environment, we see limited possibility on an immediate basis."

Additionally, Motilal Oswal said that Airtel would "significantly" benefit if Vodafone Idea triggers a price hike or if the market turns duopoly.

Original article: Analysts Expect Telecom Industry Tariff Hikes to be Imminent

Zee Plex Pay-Per-View Movie Service Launched, Available on Several DTH Platforms

Posted: 02 Sep 2020 02:45 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/zee-plex-movie-service-launched/294329/, Zee Plex Pay-Per-View Movie Service Launched, Available on Several DTH Platforms

Zee Entertainment Enterprises Ltd (ZEEL) has announced a new pay-per-view movie service called ‘Zee Plex.’ According to the company, the Zee Plex is India’s 1st ‘Cinema2Home’ (C2H) service on television and digital platforms. The core idea of this offering is to allow consumers to watch their favourite movies in the comfort of their homes at an attractive per film price point. Zee Plex will be available in India from October 2 as a Pay Per View service to the subscribers of leading distribution platforms like Dish TV, D2h, Tata Sky and Airtel Digital TV.

Key Highlights of Zee Plex

As noted, Zee Plex is a C2H service which will allow customers of leading DTH platforms to watch blockbuster movies right in their homes. The service will also be available across established content distribution networks across the globe. The company confirmed the service would be available 24×7 and feature shows at various intervals through the day, giving consumers the required flexibility.

Consumers will also be able to book their movie shows well in advance before the release date. As for the availability of Zee Plex on digital platforms, users can avail it on ZEE5 in India and overseas markets as well.

The pricing details of the service are yet to be revealed, but ZEEL says it will be offered at an ‘attractive price point.’ Lastly, users will have multiple payment options to purchase movies.

Zee Plex is scheduled for launch on the Foundation Day of the company – i.e. October 2, 2020. Along with convenience for consumers, ZEE says the new movie distribution model will enhance the overall commercial ecosystem for the film producers, enabling them to present their creative work, to a wider range of audiences on established entertainment platforms.

More details regarding Zee Plex are expected to be revealed as we inch towards the launch in October.

Original article: Zee Plex Pay-Per-View Movie Service Launched, Available on Several DTH Platforms

Apple and Google to Help People With COVID-19 Exposure Notification Feature

Posted: 02 Sep 2020 01:42 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/apple-google-covid-exposure-notifications/294349/, Apple and Google to Help People With COVID-19 Exposure Notification Feature

A few months back, when it was still an early COVID-19 period for the world, Apple and Google announced that they are coming together to build a feature which will help people recognise if they have been exposed to someone who has been tested positive for COVID-19. The feature was still in developing stages for a few months until now. Both the companies on Tuesday announced that they are going to enable the feature of COVID-19 exposure notifications which can happen without the need for building an app.

Apple and Google Exposure Notification Express

The new system for helping people track if they have been near someone who was tested COVID-19 positive is called Exposure Notification Express. For the feature to work, the companies will accept a small configuration from the public health officials. Then both Apple and Google will use the submitted file to set up the system which will allow people to choose whether they want to determine if they have been in close proximity to someone who was tested positive for COVID-19.

For people who use iPhones, a new version of iOS is being released and it will alert the users if they are availed with the exposure notification system by the permission of the local health authorities. iOS users won't have to download any app for the feature to work. But for the Android users, they will get a prompt from the system to download an app which will be generated automatically.

One question that looms over the heads of millions of smartphone users is whether this will invade with their privacy. But Google and Apple have said that the data which is tracked is not for the personal use of the company. Another question that a lot of people have over such an app is just how effective will it be in solving the issue of COVID-19? Will it make any difference in the number of rising cases? Answer to these questions will only come with the time.

Original article: Apple and Google to Help People With COVID-19 Exposure Notification Feature

Xiaomi Redmi 9A Launches in India: Offers Helio G25 SoC and 5000mAh Battery at Rs 6,799

Posted: 02 Sep 2020 12:10 AM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/xiaomi-redmi-9a-pricing-india/294343/, Xiaomi Redmi 9A Launches in India: Offers Helio G25 SoC and 5000mAh Battery at Rs 6,799

Xiaomi Redmi 9A finally went official in the Indian market today. The Redmi 9A comes as a successor to the Redmi 8A and the prices start at Rs 6,799. The Redmi 9A completes the company’s ‘9’ series of phones which includes Redmi 9A, Redmi 9, Redmi 9 Prime, Redmi Note 9, Redmi Note 9 Pro and the Redmi Note 9 Pro Max. Xiaomi first launched the Redmi Note 9 Pro series in March this year, followed by the Redmi Note 9. In the last six weeks, Xiaomi has launched the Redmi 9 Prime, Redmi 9 and the completes the lineup today with the Redmi 9A. Key specifications of the Redmi 9A include 5000mAh battery, massive 6.53-inch HD+ display and MediaTek Helio G25 SoC. Continue reading to know about the Redmi 9A in detail.

Xiaomi Redmi 9A: Specifications and Features

The Redmi 9A rocks a 6.53-inch HD+ display with an aspect ratio of 20:9. Underneath, it has the MediaTek Helio G25 chipset, paired with up to 3GB of RAM and 32GB of storage. The phone comes in two variants- 2GB+32GB and 3GB+32GB. There’s a microSD card slot as well for storage expansion up to 128GB. The phone boots MIUI 12 based on Android 10 out of the box. The company says the phone packs Reading Mode 2.0 and Dark Mode out of the box.

Unlike the Redmi 8A Dual which offered dual rear cameras, the Redmi 9A has a single 13MP shooter on the back. To the front, the phone has a 5MP shooter. Connectivity options include VoWi-Fi, VoLTE, Wi-Fi, Bluetooth and a Micro USB port. Lastly, the Redmi 9A is backed by a 5000mAh battery and there’s a 10W charger inside the retail box. Oddly, Xiaomi moved back to the Micro USB port from the USB Type-C port which is used on the Redmi 8A, 8A Dual and other devices launched in 2019. And yes, the Redmi 9A lacks a fingerprint scanner, but you do get the option of software-based Face Unlock.

Xiaomi Redmi 9A: Pricing and Availability

Xiaomi has launched the Redmi 9A in two configurations- 2GB+32GB at Rs 6,799 and 3GB+32GB at Rs 7,499. The first sale of the handset will take place on September 4, at 12 PM on mi.com, Amazon India and Mi Home stores. The Redmi 9A can be picked up in three colour options- Sea Blue, Nature Green and Gray. The Redmi Earphones have also been launched in the country at Rs 399.

Original article: Xiaomi Redmi 9A Launches in India: Offers Helio G25 SoC and 5000mAh Battery at Rs 6,799

Netflix Makes its Debut on JioFiber, Upgrade Options Enabled

Posted: 01 Sep 2020 11:27 PM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/netflix-jiofiber-debut-upgrade-options/294325/, Netflix Makes its Debut on JioFiber, Upgrade Options Enabled

Reliance Jio, the largest telecom operator in India on Wednesday enabled Netflix subscription to its JioFiber users who have opted for its plans priced at Rs 1499 and above. The operator is currently offering the monthly subscription to Netflix, one of the leading over-the-top (OTT) platform to its users subscribed to the Diamond, Diamond+, Platinum and Titanium packs. Reliance Jio on Monday unveiled its revamped JioFiber plans with symmetric speed and "truly unlimited" packs. The company said that the subscription to "top 12 paid OTT apps" will be provided at no additional cost to its users who pick the plans priced at Rs 1499 and above.

Netflix Lands on JioFiber Platform

Reliance Jio is currently offering the "Basic" Netflix subscription to its JioFiber users with Diamond, Diamond+, Platinum and Titanium packs. The "Basic" Netflix subscription priced at Rs 499 per month enables users to stream in standard definition (SD) from a single screen at the same time.

Netflix said that its users with the Basic subscription can stream unlimited movies and TV shows on laptop, tablet, TV or mobile phone. The "Basic" subscription is an entry level Netflix package that enables users to stream movies on TV. However, Netflix does offer "Mobile" and "Mobile+" plans that are comparatively priced at a lower point without access to TV streaming.

The streaming giant also offers "Standard" and "Premium" plans at higher price points that enables users to stream in high-definition (HD) and Ultra HD.

JioFiber Users Can Opt for Standard and Premium Netflix Plans for Additional Cost

Crucially, JioFiber users with subscription to the Diamond plans and above can opt for "Standard" and "Premium" Netflix plans at an additional cost. The "Standard" and "Premium" subscriptions are available to JioFiber users at an additional cost of Rs 150 per month and Rs 300 per month respectively.

The Standard Netflix subscription enables users to stream unlimited movies, TV shows on two screens at the same time in HD quality. Further, the "Premium" Netflix subscription carries the perks of the Standard subscription but enables users to stream in Ultra HD quality and on four screens at the same time. The Standard and Premium Netflix subscription are normally priced at Rs 649 per month and Rs 799 per month respectively.

It has to be noted that the JioFiber Diamond pack carries a price tag of Rs 1499 per month enabling users to browse "truly unlimited" internet at 300 Mbps speed. The "truly unlimited" JioFiber packs carry a "commercial usage policy" of 3300GB or 3.3TB.

The revised JioFiber plans unveiled on Monday are priced in the range of Rs 399 to Rs 8499. The users subscribed to the Gold pack are provided OTT subscription to 11 apps such as Amazon Prime Video, Disney+ Hotstar, SonyLIV, Zee5, SunNXT,VOOT, ALTBalaji, Hoichi, ShemarooME, Lionsgate Play, JioCinema and JioSaavn.

The revised Gold plan priced at Rs 999 per month enables users to browse at 150 Mbps speed till 3300GB. The users subscribed to Diamond pack and above are provided the subscription to 11 OTT apps on the Gold plan along with the subscription to Netflix.

Original article: Netflix Makes its Debut on JioFiber, Upgrade Options Enabled

Poco M2 India Launch Set for September 8

Posted: 01 Sep 2020 09:56 PM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/poco-m2-india-launch-date/294319/, Poco M2 India Launch Set for September 8

After launching the Poco M2 Pro in India back in July this year, Poco is all set to introduce its younger sibling, the Poco M2 on September 8. The announcement of the Poco M2’s arrival is confirmed officially on Twitter by C Manmohan, General Manager at Poco India. There are no details available regarding the Poco M2, but the landing page on Flipkart confirms the handset will have a teardrop notch display. It seems like the Poco M2 will be priced below Rs 10,000, marking the company’s entry into the budget segment. Besides, we can also expect Poco to announce the launch date of Poco X3 on September 8 during the Poco M2’s launch.

Poco M2: What to Expect?

The Poco M2 Pro just went on open sale in the country and we are already looking at the Poco M2. Going by the features highlighted on Flipkart, the Poco M2 will feature a massive display with a teardrop notch and noticeable bezels all around it. Poco is also teasing the handset to deliver better performance and it might come with more RAM. The phone also seems to have a big battery cell too.

So far, we haven’t seen the Poco M2 visiting any benchmark website or any certification website. The launch date announcement came as a surprise as Poco fans were eagerly waiting for the launch date of Poco X3.

Back in June, we have reported that a mysterious Poco smartphone with model number- M2004J19I was spotted on a certification website. It was interesting to note that the M2004J19I model number belongs to Xiaomi’s Redmi 9 which arrived in India as Redmi 9 Prime last month.

Going by the presence of teardrop notch, there might be a possibility that the upcoming Poco M2 will be a rebranded Xiaomi Redmi 9 aka Redmi 9 Prime for the budget segment. The Redmi 9 Prime is retailing in India for Rs 9,999 and it will be interesting to see how Poco undercuts Xiaomi this time around.

Original article: Poco M2 India Launch Set for September 8

Rs 999 Broadband Plan from JioFiber and Airtel Xstream Fiber Compared

Posted: 01 Sep 2020 06:31 PM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/rs999-broadband-plan-jiofiber-airtel-xstream-compared/294217/, Rs 999 Broadband Plan from JioFiber and Airtel Xstream Fiber Compared

rs999-broadband-plan-jiofiber-airtel-xstream-compared
Both JioFiber and Airtel Xstream Fiber have become two of the most popular broadband service providers in the country. Reliance Jio offers a lot of benefits with its plans which are on the expensive end and it is the same with Airtel Xstream Fiber plans. While there is a bigger range of options to select from when looking at the JioFiber plans, Airtel Xstream Fiber plans offer really valuable services too. Both companies offer different plans at different prices. Yet, there are three plans of the same pricing under offering from both the broadband service providers. These plans are of Rs 999, Rs 1,499, and Rs 3,999. Today we are going to look at the Rs 999 plan from both the service providers and compare them to see which one is better.

JioFiber Rs 999 Broadband Plan

The Rs 999 plan is the third most expensive plan under the listing of JioFiber. Name of this plan is 'Gold'. This plan offers customers a 150 Mbps internet speed. One thing to note is that both the download and upload speed is symmetrical. With GST added, the total price will become Rs 1,178 for you. It has a validity of 30 days. The customer gets unlimited data. But as we reported earlier, the unlimited data from JioFiber still has a FUP limit of 3.3TB data per month.

Along with this, you get free voice calling benefit which comes without a FUP limit. Coming to the OTT benefits of the broadband plan, the customer is eligible to get Amazon Prime Video, Disney+ Hotstar, ZEE5 Premium, SonyLIV, Sun NXT, Voot, ALTBalaji, Hoichoi, ShemarooMe, Lionsgate Play, JioCinema, and JioSaavn.

Airtel Xstream Fiber Rs 999 Broadband Plan

Airtel Xstream Fiber also provides a Rs 999 plan and it is the second most expensive plan from the internet service provider. Name of this plan is 'Entertainment'. It comes with 200 Mbps speed and the speed is symmetrical for both downloading and uploading. With GST, the cost of the plan becomes the same as of JioFiber's – Rs 1,178.

But with Airtel Xstream Fiber, you get an extra 50 Mbps speed for the same price. However, there is no unlimited data. The plan originally comes with 300GB monthly FUP data. If he/she wants unlimited data, they need to pay Rs 299 on top of the price of the plan. But with Jio, the customer gets unlimited data (3.3TB) without paying anything extra. In some cities like Hyderabad and Vijayawada, Airtel is providing unlimited data with the Rs 999 broadband plan.

As for the OTT benefits, there is a one-year subscription of Amazon Prime Video and Airtel Xstream Premium included. With that, there is also a one-year subscription of Shaw Academy along with other Airtel Thanks benefits. Overall, if you can do with 300GB data for a month, Airtel seems like a better option but if you want unlimited data then go with the JioFiber Rs 999 plan.

Original article: Rs 999 Broadband Plan from JioFiber and Airtel Xstream Fiber Compared

Relatively Shorter Payment Timeframe for AGR Dues Can Have an Impact on Industry Structure: ICRA

Posted: 01 Sep 2020 12:31 PM PDT

This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/shorter-payment-timeframe-agr-dues-icra/294173/, Relatively Shorter Payment Timeframe for AGR Dues Can Have an Impact on Industry Structure: ICRA

The Supreme Court today announced its judgement on the AGR case and allowed a ten-year payment term with 10% upfront payment for repayment of the AGR dues. For the unaware, the three telcos have t pay Rs 90,000 crore as AGR dues to the government. ICRA opined that the relatively shorter payment timeframe exerts additional pressure on the cash flows and necessitates sizeable ARPU increase and can have an impact on the industry structure. Telecom operators in the country are now looking to increase their ARPU by having another tariff hike in the coming months.

Indian Telecom Industry Was on a Path to Recovery

The telecom industry, after witnessing a tough phase with intense competition and pricing pressures, was on a path to recovery. In December 2019, all the three telcos- Reliance Jio, Airtel and Vodafone Idea announced tariff hikes. The tariff hikes have led to the restoration of pricing power to the telcos and aided improvement in the operating metrics of the industry with growth in revenues and profit margins. Thanks to the tariff hike, Airtel’s ARPU grew and it continues to grow with every passing quarter.

“The tariff hikes have led to the restoration of pricing power to the telcos and aided improvement in the operating metrics of the industry with growth in revenues and profit margins,” said ICRA in a note.

Over the last few years, the industry has been riddled with elevated debt levels amid consistently high capex requirements. As per ICRA estimates, the debt as on March 31, 2019 stood at Rs 5 lakh crore, which witnessed a decline to Rs 4.4 lakh crore as on March 31, 2020, following the series of deleveraging measures undertook by private operators during FY2020. Moreover, despite the improvement in cash flow and moderation in capex intensity, the debt is further expected to increase to Rs 4.6 lakh crore as on March 31, 2021 owing to addition of AGR dues.

ICRA’s Ms Anupama Arora believes that the 10-year payment for the AGR dues dampens the relief on auction payments to some extent and is likely to weigh heavily on the balance sheet of the weaker telecom operator, especially when the two-year moratorium gets over and auction payments start in FY2023.

Telcos received a major blow as they were seeking for at least 15 years of duration for clearing the AGR dues, but the Supreme Court decided to provide just ten years.

Original article: Relatively Shorter Payment Timeframe for AGR Dues Can Have an Impact on Industry Structure: ICRA

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