The entry of Reliance Jio on September 5 previous year has forced incumbent telecom firms to cut voice and data tariffs and the stiff competition, price war and reduced revenue has trapped telecom into a highly leveraged sector, part two of the Economic Survey for 2016-17 said. The gross revenue of Bharti Airtel, VodafoneIndia and Idea Cellular has seen a decline of 7.98%, 5.14% and 4.91% during the third quarter in 2016-17.
"For the first time in over 20 years, the telecom sector registered de-growth in revenues, leading to a reduction in the government's share in revenues, sharp drop in operating margins, accompanied by increased interest costs arising from a staggering industry debt burden, and higher depreciation and amortisation charges as a result of higher spectrum purchase costs", the statement said. The share of the sector in NPAs has soared despite a decrease in actual value to Rs 2,335 crore in 2016-17 from Rs 3,465 crore in 2015-16.
Jio's pricing scheme has forced the other telecom companies to cut their voice and data rates to an average of less than 2 dollars but the worrying fact is that the share of the telecom sector in the non-performing assets (NPAs) has now increased, it said.
Telcos hope the IMG provides some relief to the industry reeling under large debt of Rs 5 lakh crore, which banks peg at Rs 7.29 lakh crore, facing stretched balance sheets and hit to profitability amid brutal price competition from Reliance Jio that began offering free voice and data since last September.
The sector has debt of almost Rs 5 lakh crore and the banking sector - which pegs debt at Rs 7.29 lakh crore - is anxious that competition will lead to defaults.
Telecom minister Manoj Sinha has previously said that the government will not shy away from taking "bold steps" to save the sector which has been the poster child of connecting India.
As per the survey, the mobile industry in India accounts for 6.5 per cent ($ 140 billion) of GDP, and employs over 4 million people direct and indirectly. "The telecom sector has experienced its own version of the "renewables shock" in the form of a new entrant that has dramatically reduced prices for, and increased access to, data, thereby benefitting-at least in the short run- consumers".
The Blues forced goalkeeper Tom Heaton into a couple of smart saves, in a hope of regaining a foothold in the match. Chelsea boss Antonio Conte joked that he will prepare his side to go down to 10 men for the next game.
Raymond James Financial Services Advisors Inc increased Smucker J M Co ( SJM ) stake by 24.55% reported in 2016Q4 SEC filing. Congress Asset Management Company bought 2,352 shares as the company's stock declined 7.31% while stock markets rallied.
Mourinho did no such thing. "Some people can get sick of it, but most players would like to have been the first to score". United have spent around £150million adding Romelu Lukaku , Nemanja Matic and Victor Lindelof to a star-studded squad.
Stocks saw some strength during trading on Friday, regaining ground following the sell-off seen in the previous session. ET (1434 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 70.95 points, or 0.47 percent, to 15,146.38.
Posting her topless photos on her public Instagram account has definitely raised the pulses of her huge fan base. Some of the photo uploads had comments section enabled while Esha disabled the option for most of the pictures.
Finally, Diego Costa remains away from the squad following his public fallout with Antonio Conte and the club over the summer. Conte would not talk about individuals - "the club knows very well my opinion" - but he was happy to make a broader point.
Conte has been busy during the transfer window with a lot of coming and goings, on what seems a daily basis in West London . Here RealSport take a look at the Blue boys who will be playing for other Premier League sides during the next campaign.
That and another cup run, ending in lifting the FA Cup , and the quarter-finals of the Champions League, at worst. They have one of the best attacks in the league and the addition of Bernado Silva will only make them better.
Rory McIlroy and his fantastic cart-path par at PGA
Most famously, Spieth and Phelps in July were part of a high-profile athlete group that posed for an Instagram photo. Spieth was happy to get through with a 72 in his quest to become the sixth player to complete the career Grand Slam.
Invesco Mortgage Capital Inc
PNC Financial Services Group Inc. boosted its position in shares of Invesco Mortgage Capital by 203.6% in the first quarter. West Family Incorporated holds 0.03% or 10,000 shares in its portfolio. 49,082 are held by Old Mutual Glob (Uk) Limited.
Giroud confirms Arsenal stay after opening-day winner
A lot of people feel they aren't serious contenders because they do not have the "big" names that can elevate them to that level. The Premier League is back! Arsenal will today host erstwhile champions, Leicester City in a first-of-its-kind Friday kick-off.
Giroud wants to stay and fight for his place, claims Wenger
Carragher was speaking shortly after Giroud had helped Arsenal to an incredible comeback win against Leicester at the Emirates . The English Premier League is going to be back with a bang as Arsenal take on Leicester City in the opening match tonight.