Telcos’ credit profile to be under strain, 5G pricing expensive: Ind-Ra

MUMBAI: Rating firm- India Ratings and Research (Ind-Ra) cautioned that credit profiles of telcos will continue to strain because of severe competition and increased debt levels, despite revenues of mobile services showing signs of stability.

“…despite stabilisation of mobile services revenues in 4QFY19, the credit profiles of telecom players (telcos) will remain under pressure in the medium term due to the high competitive intensity, elevated debt levels and continued reliance on capital infusion (promoter equity infusion, asset monetisation) for debt servicing and capex,” said the rating agency in its report on Tuesday.