Tariff hike in telecom ‘inevitable’, two rounds likely in 12-18 months: EY

Tariff hike in the telecom sector is “inevitable” as the current structure does not allow reasonable returns for operators, although a lot would depend on the timing given the “unprecedented” scale of the Covid-19 pandemic and resultant affordability crisis, according to EY.

Acknowledging that an immediate tariff increase may not be feasible in the current setting, Prashant Singhal, emerging markets Technology, Media & Entertainment and Telecommunications (TMT) Leader at EY said two rounds of tariff hikes can be expected in the next 12-18 months, including one in the next six months.

“Tariff hike is necessary. Telecom as spend for consumers is fairly low, and tariff hikes should likely happen over next 6 months, I am not saying it must, but sooner the better…