Airtel, Reliance Jio, Vodafone Idea up the ante with higher capital commitments

Mumbai: “There are but two ways of paying debt: increase of industry in raising income, increase of thrift in laying out,” said Thomas Carlyle, a Scottish writer and philosopher. Indian telecom firms have tried all they could—raising revenues, cutting costs—but all of that has amounted to a few drops in the ocean when compared to their monumental debt.

Bharti Airtel Ltd, the best placed of the lot, with a debt to Ebitda ratio of about 4.2 times, lost its investment grade rating last month from Moody’s Investors Service. Ebitda stands for earnings before interest, taxes, depreciation and amortization.