Government relief only hope, else telecom sector headed for duopoly: Analysts

NEW DELHI: The future of the second-largest telecom industry in the world with an installed subscriber base of over 1.2 billion, contributing 8% to India’s GDP growth has hit a roadblock post dismissal of review petition on Adjusted Gross Revenue (AGR) by the Supreme Court on Thursday.

Industry experts are divided over the likely outcome of the sector heading towards a duopoly with two private telcos-Reliance Jio and Bharti AirtelNSE 5.52 % plus one PSU- BSNL with a limited reach. While others are banking their hopes with the government stepping in with some sort of relief measure such as allowing staggered payments over years.

New Street research believes that a two-player outcome by far is the most likely outcome due to three reasons- the government unilaterally will not provide any relief to VIL,