Telecom industry under financial stress, says Vi
- ByAyushi Ray | September 8, 2021
Telecom industry under financial stress, says Vi. In the chairman’s letter to shareholders, Himanshu Kapania cited persistent challenges in the operating environment, amid “unsustainable pricing” and “hyper-competition” during FY21. Kapania expressed hope that the government will support efforts to generate reasonable returns on massive investments. “As the industry continues to remain under unsustainable financial duress, your company is hopeful that the government will provide the necessary support to address all structural issues faced by the sector,” said Kapania who was elected by the Vi board as non-executive chairman after Kumar Mangalam Birla stepped down from the position, in early August.
Vi with a history of providing 25 years of mobile services to the country “is hopeful that the government will support its efforts to generate reasonable returns on their massive investments”, he said. Through the course of FY21, the operating environment continued to remain challenging due to unsustainable pricing and hyper-competition, which were further aggravated by the Covid-19 pandemic, Kapania noted. While the operating challenges remain, increasing digital penetration that has got a further boost during the pandemic remains a massive opportunity for the telecom industry especially when the pricing revives in future, said the company. Vi “believes the government recognises the criticality of the sector and the importance of retaining healthy competition among private sector operators”.
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