INSUBCONTINENT EXCLUSIVE:
ICRA has actually updated the outlook for telecom services industryNew Delhi: The telecom tariff hike in addition to the current relief plan
offers adequate headroom for the industry to carry out deleveraging as well as fund capex for 5G tech upgrade, score company ICRA stated on
Wednesday modifying outlook on telecom services sector to 'steady' from 'negative'
The walking coupled with constant upgradation of customers to 4G from 2G and boost in usage of telephony services is anticipated to lead to
improvement in industry ARPU (average earnings per user) to around Rs 170 by the end of 2022-23, it said.The telecom industry has actually
executed the long-awaited tariff hikes which have the prospective to enhance the industry ARPU levels to around Rs 170 by the end of
2022-23, according to ICRA
This will lead to increased earnings generation, which coupled with the relief bundle announced by the federal government, supplies adequate
headroom for the market to carry out deleveraging along with fund capex (capital investment) for the innovation upgrade to 5G, the company
said.Sabyasachi Majumdar, senior vice-president and group head (corporate rankings) of ICRA Limited, said the latest round of tariff hikes
where telecom companies increased the pre-paid tariffs by around 20 per cent will provide much-needed traction in the ARPU levels
We anticipate the industry revenues to grow by 18-20 percent in 2022-23, followed by a growth of 10-12 percent in 2023-24, which provided
the high operating utilize, is most likely to translate in healthy expansion in running revenues, the very same are predicted to grow by
around 30 percent in 2022-23, it stated
While the moratorium on the dues would impact the non-tax receipts of the government from the telecom sector, two telcos have actually
pre-paid their fees towards earlier spectrum auctions totalling to Rs 26,300 crore consequently making up for the loss to the federal
government, ICRA included further.For 2021-22, the telecom sector is expected to contribute around Rs 54,000 crore to the federal
government's non-tax invoices which will be close to the budgeted estimate for the financial, it estimated.Debt, however, continues to
remain the Achilles' heel of the market, it warned.ICRA anticipates industry debt levels to stay at around Rs 4.7 lakh crore as on March
31, 2022, prior to moderating to Rs 4.5 lakh crore as on March 31, 2023
Telcos have actually been focusing on de-leveraging and Bharti Airtel just recently concluded its rights concern of Rs 21,000 crore and
gathered 25 percent as in advance payment, while Vodafone Idea is likewise scouting for a fundraising event, ICRA said in a declaration.
