Foreign Direct Investment (FDI) as a source of funding has shrunk to a trickle for the once lucrative telecom sector with foreign investment inflows plunging to $43 million in the April-September period of the current fiscal.
Liberalization and telecom reforms are known to be necessary to hasten growth in tele-density.
Modi on Friday met industry leaders in New Delhi at a closed-door meeting.
'Interim Budget has ignited the entrepreneurial spirit.'
Foreign direct investment (FDI) equity inflows in India declined 24 per cent to $20.48 billion in April-September 2023, dragged by lower inflows in computer hardware and software, telecom, auto and pharma, according to government data. FDI inflows stood at $26.91 billion during the first six months of the last fiscal. Inflows during January-March 2023 also contracted 40.55 per cent to $9.28 billion.
The network sharing agreement is the start of a new era of partnership between the brothers. More deals on sharing towers and intra-city fibre network are likely.
'Considering that an Internet company's market value is largely determined by its direct access to consumers for digital services, and largely served outside a sovereign country's control, it would appear reasonable in trade terms to discuss fees for a seat at the proverbial 'table' of opportunities in the largest open consumer market,' argues Venki Nishtala.
Telecom and petchem businesses will drive growth for RIL.
'There is definitely a skill war, or a talent war going on.'
Asserting that leading international consultancy firm A T Kearney had rated India as the third hottest FDI destination, India on Thursday sought investment from Taiwan in telecom and ICT ventures.
Telecom regulator TRAI on Tuesday released a detailed consultation paper to discuss threadbare the modalities for auction of spectrum across multiple bands, including pricing, quantum and other conditions -- preparing the groundwork for 5G auctions slated for next year. Trai's comprehensive consultation paper runs into 207 pages and throws up 74 questions for industry-wide discussion, touching on crucial aspects like valuation and reserve price of spectrum, including 5G, quantum of spectrum, block size, eligibility conditions for participation in auction, roll-out obligations, spectrum cap, and surrender of spectrum. Norms will also be worked out for new frequencies such as 526-698 MHz and millimetre band, that is 24.25 - 28.5 GHz, in addition to bands such as 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz.
A department of telecommunication official said the regulator has already put questions relating to uniform licence fee to the stakeholder in its consultation paper 'Overall Spectrum Management and Review of License Terms and Conditions'.
Private telecom operators have created ripples in the Indian telecom market by accounting for 43 per cent of total telecom services revenue in 2004-05.
The telecom industry, with a cumulative debt of around Rs 2,75,000 crore (Rs 2,750 billion), has been mired in various controversies, besides facing intense competition, low tariffs and falling margins.
A DoT panel has suggested completely opening up the telecom sector to foreign direct investment, a move which is expected to bring in fresh funds into the industry that is facing a financial crisis.
Billionaire Mukesh Ambani's children -- Isha, Akash and Anant -- on Monday were appointed on the board of his energy-to-technology conglomerate Reliance Industries Ltd, in what is seen as a clear path of succession planning at India's most valuable company.
Narendra Modi is India's most successful prime minister and the greatest global leader of current generation, billionaire Mukesh Ambani said on Wednesday as he flaunted his group Reliance Industries' Gujarati heritage and its over USD 150 billion (Rs 12 lakh crore) investment in last 10 years.
Ambani said Jio will offer the world's lowest data tariff
Operators say 10-paisa, 25-paisa calls not possible.
The industry expects faster finalisation of 2G spectrum bidding process, more clarity on the spectrum prices and related issues.
The cost cutting efforts by corporates, like restricting travel, would also be beneficial to the industry. HotSpot, the multi-brand technology retail chain of the Spice group, will increase its presence to around 3,000 outlets in the next two years.
The policy was earlier expected to be unveiled by December this year, but delays in receiving recommendations have pushed the date to next year.
While smart boys like the Ruias of Essar, Ajay Piramal, Max India promoter Analjit Singh laughed all the way to the bank, the Tatas, Anil Ambani, Malaysian tycoon T Ananda Krishna of Maxis (which invested in Aircel), Sistema, and Norway's Telenor burnt their fingers, notes Surajeet Das Gupta.
Telecom sector has seen phenomenal growth over the past decade or so, says the prime minister.
The continued growth in the communications sector, especially mobile subscriber base, is expected to push further the level of energy consumption by networks, Trai said while releasing a consultation paper 'Green Telecommunications'.
Since August 2013, FIPB has approved two FDI proposals in the telecom sector.
The recommendations of the commission will now be put before the empowered group of ministers headed by Finance Minister P Chidambaram for a final decision.
Adani group opened a $1.2 billion copper plant, bought a port in Odisha, raised stakes in a cement company and stitched an alliance with rival Mukesh Ambani's Reliance Industries, all in a matter of one week in signs that the apples-to-airport conglomerate has shrugged off the Hindenburg effect and is back to rapid expansion spree. In the last one week, Adani group has through regulatory filings and press statements announced expansions and investments in its mainstay ports business, diversification into metal refining, fund infusion into a two-year-old cement foray and continuing progress in the commissioning of its mega solar project.
Companies such as Tata Sons and Bharti Telecom, which are unlisted but have listed subsidiaries, may soon have to file periodic financial statements with the registrar of companies under the new provision of the Companies Act. The provision requires greater financial disclosures by a certain category of unlisted companies.
Oil to telecom conglomerate Reliance Industries (RIL) has initiated the process to seek shareholders' approval for the appointment of the third generation of the Ambani family on the company's board. The remote voting through postal ballot will start from September 27 onwards. In a separate note, CreditSights said a trust and hold-co model could be a possibility for the anticipated succession at RIL.
The Adani group plans to bid for setting up duty-free shops at the Macau international airport, as India's largest airport operator spreads its wings overseas. In a stock exchange filing, Adani Enterprises, the flagship firm of the conglomerate run by billionaire Gautam Adani, said it has completed the incorporation of a wholly-owned subsidiary, MTRPL Macau Ltd, in Macau on November 20. The subsidiary has been incorporated for the purpose of getting into the duty-free industry.
The other stressed sectors, according to Chidambaram, are infrastructure, steel, construction, textile and food processing.
Private telecom operators have managed to grab 43 per cent of the total revenue generated from telecom services during 2004-05, says a leading communications business magzine.
DoT plans to initiate move that might lower the revenues telcos share with government.
he meeting is part of Sibal's efforts to achieve the 100-day plan for reforms in the telecoms sector in consultation with the industry.
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