Telecom sector to consolidate further: Kotak Institutional

Reeling under huge financial stress, the Indian telecom industry will consolidate further if the government does not offer a material relief on AGR liabilities, regulatory levies and potentially a floor on pricing, a report noted. A ‘no material relief’ scenario would be an industry-structure-altering one, it added.

“We believe that the Indian wireless industry would consolidate further in case the government does not offer a material relief on … the AGR (adjusted gross revenue) case liabilities … other aspects like recurring regulatory levies, deferred spectrum payments and … potentially a floor on pricing,” said Kotak Institutional Equities.