Five telecom operators in India is enough competition in the market: Telecom secretary
JS Deepak said the ongoing consolidation in the sector 'is going to be very good for India'.
Telecom Secretary JS Deepak on Sunday said the presence of five operators in India would ensure enough competition in the market. At the Mobile World Congress in Barcelona, Deepak said that the ongoing consolidation in the sector “is going to be very good for India as we are likely to get four private and one government player”, PTI reported.
The telecom department was trying to address various issues affecting the sector, Deepak said. “Dropping revenue is a concern that we are also addressing...era of free service and falling revenue will change,” he said. “In this backdrop, investments in India are not only welcome but are also likely to be productive.”
Calling the telecom industry a “scale business”, the secretary added that it was possible to for companies to make profits “even with low tariffs”. “Profits may not happen immediately but those who stay on for the long-term, will make them,” he said. At the MWC, Deepak is expected to meet executives from companies such as Facebook, Huawei, Nokia and Vodafone to talk about the reforms in the Indian mobile market.
His remarks come even as the telecom industry in India continues to go through quick and major developments. On February 21, the Mukesh Ambani-owned Reliance Jio said it had reached 100 million subscribers in 170 days. Ambani announced that a new Jio Prime offer will kick-in soon after the existing New Year offer ends.
On February 23, Bharti Airtel said it was acquiring Norwegian telecom operator Telenor’s Indian operations. “The agreement underlines our commitment to lead India’s digital revolution by offering world class and affordable telecom services,” Airtel Managing Director and Chief Executive (India and South Asia) Gopal Vittal said.
Telenor India currently operates in seven circles – Andhra Pradesh, Assam, Bihar, Gujarat, Maharashtra, Uttar Pradesh (East) and Uttar Pradesh (West). Separately, Vodafone India and Idea Cellular Limited have confirmed that they are in merger talks.