Telecom industry to consolidate further in ‘no relief’ scenario: Kotak Institutional Equities

The Indian mobile industry will consolidate further if the government does not offer a material relief on AGR liabilities, regulatory levies and potentially a floor on pricing, according to Kotak Institutional Equities.

A ‘no material relief’ scenario would be an industry-structure-altering one, it added.

“We believe that the Indian wireless industry would consolidate further in case the government does not offer a material relief on…the AGR (adjusted gross revenue) case liabilities…other aspects like recurring regulatory levies, deferred spectrum payments and …potentially a floor on pricing,” Kotak said in a recent report.