By Moumita Bakshi Chatterjee New Delhi: An increase in telecom rates is needed as current rates are “unsustainable” and market conditions will be seen before a call is taken, said telecom czar and Bharti president Airtel Sunil Mittal.
On the question of whether or not Chinese telecom equipment providers will be allowed to participate in next-generation 5G networks, Mittal said the most important question is the nation’s decision, stating that “whatever the country decides will be accepted. for all “.
When it comes to rates, the company has already taken a clear stance on the issue, he said, adding that Airtel is of the firm opinion that rates should be increased.
“… the current rates are unsustainable, but Airtel cannot move without the industry moving or the regulator moving,” Mittal said in an interview.
The industry needs a rate increase at some point, he said, adding that “we will have to see market conditions to do it.”
Mittal was responding to a question about the timing of what appears to be an impending industry-wide rate hike in the Indian market and whether Airtel will initiate it or wait for rivals to make their first move.
It is pertinent to mention that in August this year, Mittal had described the data consumption of 16 GB per month for 160 rupees as a tragedy. The company has argued that Average Revenue Per User (ARPU) should rise to Rs 200 and eventually Rs 300 for a sustainable business model. Bharti Airtel’s mobile ARPU stood at 162 rupees for the September quarter from 128 rupees in the second quarter of fiscal 2020 and 157 rupees in the previous June quarter.
The supreme of Bharti Group, who time and again has drawn attention to the high taxes and levies in the sector, further said that telecommunications is a “capital intensive industry” requiring constant flow investments in networks, spectrum , towers and technology It was therefore important that the industry was “sustainable”.
“This industry needs tons of money, it is a capital intensive industry … spectrum purchase, network production, fiber, radio, towers … this is a continuous investment industry,” Mittal said.
Unlike the installation of steel or power plants, or refineries, the telecommunications sector requires a continuous and recurring infusion of capital.
“You have to spend billions of dollars every year to get new technology, more coverage, more capacity … so this industry has to be sustainable. The government wants India to be digital India and people to be connected. I believe We will have to leave it in their safe hands, ”he said.
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As it stands, telecom policy and the new digital communications policy state that revenue maximization is not the goal, he added.
On the Adjusted Gross Revenue (AGR) issue and the recent difference of opinion that has arisen between the Department of Telecommunications and the company on when the next payment tranche is due, Mittal noted that Airtel had already paid Rs 18,000 crore, “significantly More than anyone “.
“We have paid 18 billion rupees … whatever they decide … we have paid significantly more than anyone else … so we’ll see when the final decision comes,” he said.
Mittal said that 5G spectrum prices are “unaffordable” but, at the same time, added that India has plenty of time for its 5G roadmap.
“5G spectrum prices are currently unaffordable and India has time. No one in the world is far on 5G … even countries in Europe … the UK, the US … 5G coverage is still very scarce. So we are fine, India is not far behind, “he said.
When asked when to expect full 5G deployments in India, Mittal said, “The point is, when you need it … connected cars, robotic surgeries, that’s what it takes. So do we really have that on fire? at the moment? I don’t think so. ”
Asked whether 2G will continue to exist in India even with the advent of a new generation of technologies, Mittal said that Airtel has already disabled the entire 3G layer and will continue to move customers from 2G to 4G.
“As soon as we can, we will continue to move our customers 2G to 4G, that process is underway. That is the process, it keeps happening evolutionarily, organically, every month,” Mittal added.
On whether Chinese telecom equipment companies will be allowed to participate in 5G, Mittal said: “It is not a question of whether they are allowed or not. It is a matter for the country to decide … whatever the country decides, it will be accepted. for all “. “
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