2021 to ring in spectrum auctions, potential tariff hikes for telecom sector 2021 to ring in spectrum auctions, potential tariff hikes for telecom sector NEW DELHI: Having narrowly escaped a financial collapse, the telecom sector is now headed for an auction of airwaves in the next quarter, which combined with telcos’ network investment compulsions and AGR liabilities could hasten tariff hikes in 2021. The Indian telecom market, which once had nearly a dozen operators, has in recent years seen exit of some prominent names due to cut-throat competition and legal cases. It may have been on its way to becoming a two-player market in 2020, but the Supreme Court agreed to give up to 10 years to telcos to clear Rs 1.47 lakh crore of past AGR (Adjusted Gross Revenue) dues. The apex court’s decision this year gave a much-needed breather to struggling telecom companies that had been on a razor’s edge since October 2019 when the apex court upheld the government’s position on including revenue from non-core businesses in calculating the annual AGR of telcos.
Synopsis The Indian telecom market, which once had nearly a dozen operators, has in recent years seen exit of some prominent names due to cut-throat competition and legal cases. Agencies The impending industry-wide tariff hike would improve financial metrics of companies and market watchers believe that 2021 could, well, turn out to be a year of significant industry repair. New Delhi: Having narrowly escaped a financial collapse, the telecom sector is now headed for an auction of airwaves in the next quarter, which combined with telcos network investment compulsions and AGR liabilities could hasten tariff hikes in 2021. The Indian telecom market, which once had nearly a dozen operators, has in recent years seen exit of some prominent names due to cut-throat competition and legal cases.