Indian telcos seeking financial assistance
The Indian telecom sector has experienced severe disruption since the entry of Reliance Jio, whose access to financial markets and internal financial muscle (being part of a diversified conglomerate) have allowed it to undercut incumbents’ pricing and offer 4G feature phones at very low prices to acquire subscribers and boost market share. This has triggered a wave of consolidation as incumbents attempt to strengthen their market positions. Telcos are saddled with debts, declining revenues, and high levies as well as the need for significant CAPEX/OPEX over the coming years to install, upgrade, and maintain network infrastructure. Therefore, realizing their current business models are becoming unsustainable, several operators have requested financial assistance from the government.
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