Telecom industry needs to ensure that there is no silly competition in
the market that drives down rates making businesses unprofitable, a
senior Bharti Airtel official said Wednesday.
India's telecom sector
is in serious financial trouble partly because of court's action, which
can't be controlled, and the rest because of certain factors that can be
controlled by the government and the industry, Bharti Enterprise Deputy
Group CEO and Managing Director Akhil Gupta said at the Convergence
I must point out, very unfortunate for delegates who
would have come here from abroad. You would be hearing disturbing news
about telecom sector in India and, unfortunately, most of that is true.
The sector should have been in pink of health, it is in trouble today. It is in serious financial trouble," he added.
Gupta said some of the troubles may be beyond anybody's control, but some of that is.
would be little more forthcoming in terms of clarity, which hopefully
will be done now. And industry, in making sure that there is no silly
competition so that we plummet the realised rates at such a level that
the business becomes unprofitable," Gupta said.
Gupta also serves
as Director of Bharti Airtel. He said that in his view government
clearly recognises that the telecom industry needs to be healthy so as
to provide connectivity to a billion people, which requires billions of
dollars in investment.
For that, it has to be a healthy industry. I am looking forward to a glorious future," Gupta said.
Airtel has posted decline in net profit for 11 consecutive quarters.
Its third quarter (October-December) results for the 2012 13 fiscal are
scheduled for February 1.
Meanwhile, the company's Chief Executive Officer for India and South Asia Sanjay Kapoor has decided to leave the company.
Airtel management has repeatedly pointed out that pressure on margins
due to stiff competition has led to decline in its net profit.
The company has recently raised 2G data services tariff by around 25 percent.