Intense tariff war and high taxes are expected to squeeze Indian telecom operators, leaving a gaping Rs. 1,20,000 crore deficit between the industry’s earnings and its debt/payment commitments this year, says debt-laden Reliance Communications.
With annual interest payments, loan repayment obligation, spectrum-related outgo and capex expected to add up to a Rs 1,62,000 crore tab, the operators could find it tough to meet their debt and payment needs with Rs 43,000 crore of EBITDA in 2017-18.
“The reduced EBITDA of the industry is insufficient to cover the existing debt obligations and deferred payment commitments,” RCom cautioned. The gross liability of the telecom industry on account of debt as well as payments related to radiowaves amounted to a whopping Rs 7,75,000 crore.
(Published 04 June 2017, 15:56 IST)
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