NEW DELHI: Bharti AirtelNSE -0.17 % chairman Sunil Mittal called on the government to ensure that the Indian telecom market continues to have three private carriers. He also urged the Centre and the judiciary to give “sympathetic consideration” to the industry’s appeal for relief after the Supreme Court’s order on adjusted gross revenue (AGR) left companies struggling.
Mittal also said the telecom regulator needs to urgently intervene to fix a floor price for tariffs. This, he said, is required for the average revenue per user (ARPU) to rise to Rs 200 initially, and to Rs 300 over time, for the industry to be healthy and sustainable.
“The situation is dire — it is a matter of survival for everyone. Vodafone (Idea) is in losses, Airtel is in losses, (state-owned) BSNL (Bharat Sanchar Nigam Ltd) is in losses,” Mittal said.
“We are in a better situation—we have now decided to raise funds,” Mittal said. “However, if you have to go in for network expansion, invest in newer technologies, bid for 5G spectrum and then build a 5G ecosystem which India deserves, then industry needs to be viable.”
Referring to the Bharti Airtel statement in the fiscal second quarter regarding concerns about viability if it couldn’t raise money on its terms in the face of the AGR dues, Mittal said, “That is an accounting standard They (auditor Deloitte) called it out. It isn’t my interpretation or view of the company… It is a standard and that is why we are in the market to raise money.”
