Telecom sector yet to emerge from woods; Govt support must to ensure viability: Mittal

TIL Desk/Business/New Delhi/ The government must look at rationalising levies on the telecom sector and close long standing legal disputes that are a big drag on the performance of operators, in order to ensure industry viability with 3+1 player structure, Bharti Airtel Chairman Sunil Mittal has said.

Mittal in his message to shareholders in the company’s latest annual report said, while it is clear that the “worst may be behind for India’s telecom industry”, it is yet to emerge from the woods.

“India still has some of the lowest data tariffs globally and the industry is barely able to cover the cost of capital. It requires much more support to repair the deep damage to its finances and make it viable for telecom operators to invest in future technologies,” Mittal said in the company’s FY20 annual report .

Exhorting the government to “look into the urgent needs of operators”, Mittal said that although the recent tariff increase had provided some cushion, the sector is still way below the levels to make the industry viable.