Layoffs loom in telecom industry even after AGR, Coronavirus crisis: Experts

The 40-day lockdown has been a boon for the telecom industry as work from home concept has surged the overall traffic for Indian telecom service providers. However, this boost will not compensate for the distress that the telecom sector has been facing due to intense competition, pricing pressures that culminated into weakened profitability and elevated debt levels and the adjusted gross revenue (AGR) dues, as per experts.

“Even if they are immune to the impact of the coronavirus pandemic (COVID-19) outbreak, they have more significant challenges like the AGR issue to deal with,” said a senior executive of a telecom equipment manufacturing firm on the grounds of anonymity.