Telcos' revenue growth slumps

For the first time in history, the listed operators' debt now exceeds their market capitalisation

India’s youngest industry is now the most vulnerable, financially. A combination of intense competition, price war and the bidding race for radio waves has resulted in rapid deterioration in the finances of telecom operators.

Not surprisingly, most brokerages are pessimistic about the industry’s financial prospects, given the current environment of stagnant revenues with rising capex and operating costs. 

“It is apparent that the current wireless industry size is not sufficient for most players to make any return, let alone a reasonable return on investment. Even an established player such as Idea will likely make losses in FY2018-19 based on our