Intense competition, low tariffs led to financial stress in telecom sector: Survey

News Network
January 31, 2020

New Delhi, Jan 31: Substantial competition and low tariff rates by telecom operators since 2016 have led to a financial stress in the sector, the Economic Survey said on Friday.

The data price in the country came down by over 99 per cent during 2016-2019, making it among the lowest tariff in the world, according to the survey.

"Since 2016, the sector has witnessed substantial competition and price cutting by the telecom service providers (TSPs), creating financial stress in the sector. As a result, the sector is experiencing consolidation. While some operators have filed for bankruptcy, others have merged, in their quest to improve viability," the survey report said.

In April-June 2019, the price of data was Rs 7.7 per gigabyte (GB) as compared to Rs 200 per GB in June 2016, it added.

"The Average Revenue Per User (ARPU) for GSM based mobile services has also gone down substantially from Rs 126 in June 2016 to Rs 74.30 in June 2019," the survey said.

The tariff war started in the market with entry of new telecom operator Reliance Jio in September 2016.

"BSNL and MTNL are also affected by the tariff war that has impacted their cash flow resulting in mounting losses," the survey said.

The financial health of the public sector telecom firms plummeted to a level where they have been finding hard to pay employees salaries in time.

The government has drawn up a plan to revive these PSUs which is still in works.

The revival plan consists of several measures, including reduction of staff cost through voluntary retirement scheme, allotment of spectrum for 4G services, monetisation of land and building, tower and fibre assets of BSNL and MTNL, debt restructuring through sovereign guarantee bonds and ''in-principle'' approval for merger of BSNL and MTNL.

The survey said that the wireless telephony now constitutes 98.27 per cent of all subscriptions whereas share of landline telephones now stands at only 1.73 per cent where market share is dominated by private sector players.

"The overall tele-density in India stands at 90.45 per cent, the rural tele-density being 57.35 per cent and urban teledensity being 160.71 per cent at the end of September 2019. The private sector dominates with a share of 88.81 per cent (106.06 crore connections) at the end of September, 2019 while the share of public sector was 11.19 per cent (13.36 crore connections)," the survey said.

The lower price of data has also lead in surge of broadband connections and average consumption of the internet.

Total broadband connections increased by about ten times, from 6.1 crore in 2014 to 59.46 crore in June 2019, the survey said.

The number of internet subscribers (both broadband and narrowband put together) stood at 66.53 crore at the end of June 2019 as compared to 25.16 crore in 2014.

The number of mobile internet subscribers was 64.36 lakh at the end of June 2019 while the number of wireline internet subscribers was 2.17 crore.

"India is now the global leader in monthly data consumption, with average consumption per subscriber per month increasing 157 times from 62 MB in 2014 to 9.8 GB in June 2019. The cost of data has also reduced substantially, enabling affordable internet access for millions of citizens," the survey said.

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News Network
May 23,2020

New Delhi, May 23: Carrying a sack full of belongings and a backpack on shoulders daily wager Mohammed Sunny and his friend Mohammed Danish are determined to reach home for Eid in Bihar's Araria district, facing all odds stacked up against them.

Shahjehanpur native Adesh Singh with his wife and three little children, who left their residence in south Delhi three days ago, are still scrambling to reach home, haggling with taxi drivers, to take them to their home town charging a reasonable fare.

This was among the many scenes of migrants' life on Friday at Delhi-Uttar Pradesh border touching Ghazipur in east Delhi who are struggling to make their way to their native places amid a COVID-19-induced lockdown across the country.

"We left home three days ago near Chhatarpur, we have walked and rested by roadsides, people gave us food on the way, so we survived. Now, we just want to reach home, we can't survive in Delhi," Manju Singh, wife of Adesh Singh told PTI as she waited at the UP Gate to get a taxi to cross the border on way to her home.

Their three children Alok (12), Ankesh (8) and Rupali (9), all wearing simple masks, were seen squatting on the roadside beside their luggage as their wearied parents, using cloths to cover their nose and mouth, bargained with taxi drivers to take them home, without charging much above the regular fare, saying they "did not have much cash left".

Police personnel could be seen asking many migrants who were marching on foot towards the inter-state border, to turn back.

Many did, but not Sunny and Danish, who feel if "Allah wants us to reach home, we surely will".

Both of them worked at a chemical plant in Delhi, and said, they have been "kicked out" after the lockdown was imposed, making their survival difficult in the national capital.

"We don't have money to pay rent now, or buy food, we have to go home now, what option do we have," Sunny said.

Danish alleged that the poor have been "abandoned" by the government and left in the lurch.

"The government has money to bring home Indians stranded abroad, but can't take home the Indians who have been toiling hard all these years. Is it fair to us," he asked.

"But, Inshallah, we will reach home if the Almighty wants us to, and will be joining our family for Eid, though it will hardly be a celebration this time. But, we want the comfort of being with our family at least," Sunny said.

Eid which marks the end of the holy Ramzan month, will be celebrated either on Sunday or Monday, depending on sighting of the moon.

Lakhs of migrant labourers stranded away from home in Delhi and other big cities have been attempting to reach home in the last two months, a large number of them walking on foot after they found no mode of conveyance.

The coronavirus death toll in Delhi has mounted to 208, while 660 fresh cases of COVID-19 infection reported on Friday, the highest single-day spike here, took the total in the city to 12,319.

Roshan Shrivastav (19), his nephew Shivam Shrivastav (19) and friend Prince Gupta (21), all hailing from Siwan in Bihar, were seen standing on a pavement after being told by the police to turn back from the barricade posted bear the Delhi-UP border.

"We live together in Baljeet Nagar in West Delhi, in a single room. I had come from Bihar after Holi, seeking a job, but then I got stuck in lockdown here without a job. Whatever money I had brought, and Rs 10,000 our parents had sent online, all has got exhausted in these three months," Roshan lamented.

"Our landlord has been very kind, and didn't even ask for any rent after the lockdown, but how long can we survive on charity. And, I don't like being dependent on someone, so we want to go home," he said.

Roshan said, he and Shivam, both also write and sing songs in Hindi and their native tongue Bhojpuri.

"We have written a few lines on lockdown crisis too -- 'Hum mazdooran ke ghar bhejwa da sarkar, nahin to ketna log hiyan par ho jai bimar' (please send us home or else many would fall sick here)," Shivam said, as he stood in scorching heat of May, carrying his leftover cash in pocket and hope in heart. 

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News Network
March 5,2020

Mumbai, Mar 5: Jet Airways founder Naresh Goyal and few others have been booked by the ED in a money laundering case even as the agency is conducting searches at his premises, officials said on Thursday.

They said a criminal case against the former chairman of the airlines has been filed under the Prevention of Money Laundering Act (PMLA) after taking cognisance of a recent Mumbai Police FIR filed against him.

The Enforcement Directorate carried out raids at Goyal's premises in Mumbai on Wednesday and also questioned him after filing the case, they said.

The action is continuing, they added.

The Mumbai Police FIR pertains to charges of alleged fraud by Goyal and others against a Mumbai-based travel company.

Goyal has earlier been grilled by the central probe agency in a case filed under the Foreign Exchange Management Act (FEMA) in September last year.

The agency had carried out similar raids, under the FEMA, in August last year against Goyal, his family and others.

ED has alleged in the past that the businessman's empire had 19 privately-held companies, five of which were registered abroad.

The agency is probing charges that these firms allegedly carried out “doubtful” transactions under the guise of selling, distribution and operating expenses.

The ED suspects that expenses at these companies were allegedly booked at fake and high costs and as a result, they “projected” huge losses.

Alleged shady aircraft lease transactions with non-existent offshore entities are also under the ED scanner and it is suspected that Jet Airways made payments for lease rental to “ghost firms”, which purportedly routed the ill-gotten money in Goyal's companies.

A full-service carrier, Jet Airways shut its operations in April last year after running out of cash.

A month earlier, Goyal had stepped down as the chairman of Jet Airways.

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News Network
June 8,2020

New Delhi, June 8: Only 20.26 lakh migrant workers of the targeted 8 crore such labourers have received free food grains in May and June (2020), according to data released by the Ministry of Consumer Affairs, Food and Public Distribution.

In the middle of May, as part of the Rs 20 lakh crore Atma Nirbhar Bharat package, the Modi government had announced that migrant labourers who are not covered under the National Food Security Act (NFSA) or any state-run PDS scheme, will receive free food grains for two months.

"Non-card holders shall be given 5 kg wheat or rice per person and 1 kg chana per family per month for the next 2 months. About 8 crore migrants will benefit from this scheme that will cost the government Rs 3500 crore,” Finance Minister Nirmala Sitharaman had said at a press conference following PM Modi’s announcement.

But the Ministry of Consumer Affairs, Food and Public Distribution said on Sunday, "The states and UTs have lifted 4.42 LMT (lakh metric tonne) of food grains and distributed 10,131 MT of it to 20.26 lakh beneficiaries."

It added, "The Government of India also approved 39,000 MT pulses for 1.96 crore migrant families. Around 28,306 MT gram/dal have been dispatched to the states and UTs. A total 15,413 MT gram have been lifted by various states and UTs". The state governments, the ministry added, had distributed only 631MT (metric tonnes) of gram so far.

Because of the constant movement of migrant workers, the Centre had said that the states will be responsible for identifying the migrants and subsequent food distribution.

The Centre claims it is spending approximately Rs 3,109 crore for food grains and Rs 280 crores for grams/chana under this package.

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