Telecom trade income anticipated to rise 14-15% in present fiscal: COAI

New Delhi, August 30 

Telecom trade’s revenues are anticipated to rise 14-15 per cent within the present monetary yr led by some uptick in common income per person, although the subscriber base might stay flat with rural development offsetting SIM consolidation in city places, apex affiliation COAI estimates.

The newly appointed Director-General of Cellular Operators’ Association of India (COAI) S P Kochhar advised PTI that any duopoly scenario within the present three-player non-public telcos market can “never be a good thing” and asserted that enough competitors among the many operators is required for making certain that subscribers get good providers at higher costs.

The COAI will proceed to be a impartial physique that believes in consensus constructing and unanimity of views, Kochhar stated when requested about previous variations amongst the telecom firms, who’re members of the affiliation, on numerous points.

“COAI tries to get the point of view of all members unanimously and we make sure whenever we project to any authority whether in government or regulatory, we do it as unanimous voice, we are not partisan…,” he stated.

Kochhar stated that trade’s monetary misery is “evident” and that the COAI will proceed to push for reduction together with a discount in spectrum utilization costs (SUC) and licence payment; and exemption of GST on licence payment and SUC, in addition to on cost of spectrum acquired in auctions.

On whether or not the telecom trade is headed in the direction of a duopoly, Kochhar spoke in favour of competitors saying, “at the end of the day, the general public should get benefits of telecom and that will not happen in case of a duopoly”.

It is within the curiosity of the nation that duopoly doesn’t are available and “we have more competition, so better services at better prices can be offered to subscribers”, he stated.

The trade’s income, Kochhar stated, will develop at 14-15 per cent in FY21, led by some enchancment in common income per person (ARPU).

“We additionally count on the subscriber base to stay flat on this fiscal, and the agricultural subscribers will develop to offset the SIM consolidation in city geographies. 

“Data consumption per user per month will move higher from 12 GB to 15 GB by next year, and there will be an increase in ARPU this fiscal but whether that will be a significant increase or not is something we will have to see,” he stated.

However, Kochhar added that the affiliation has not acquired any indication as but from its members’ firms on tariff hike.

“Only recently ARPUs started moving up. But with various other liabilities on telcos, profits have not yet started seeing the light of day and companies are unlikely to be profitable with the current scale of improvement in ARPUs. ARPUs should go up by at least twice the figure than it is at, now,” he stated.—PTI

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