Why 5G is the next headache for some of India's richest businessmen

Company News

After racking up $59 billion of net debt to survive a brutal war in the world’s second-biggest phone-services market, some of India’s billionaires are bracing for more as their next battle looms: 5G.
India seeks to raise $84 billion this year from a sale of airwaves -- most of it for the latest technology tipped to revolutionize connectivity -- posing a conundrum for the carriers controlled by tycoons including Mukesh Ambani, Asia’s wealthiest man. Investment would mean more borrowings, but the reward could be revenue streams never seen before.
Operators may soon decide how much more pain they can endure for a high-speed wireless network that can offer better user experience in streaming, gaming and entertainment in a market where Netflix Inc. to Amazon.com Inc. are making inroads. With applications ranging from manufacturing to education and health care, 5G could be the catalyst for India’s digital economy that has the potential to reach $1 trillion by 2025, according to a report by Deloitte.
‘Competitive Parity’
“Any player missing on the 5G service offering is likely to see erosion of market share,” said Alok Shende, a Mumbai-based principal analyst for telecom at Ascentius Insights. “There’s all the more case for maintaining competitive parity to remain in the game. Offering a forward path to customers is important.”

 Bharti Airtel Ltd. and Vodafone Idea Ltd., the two biggest carriers, didn’t respond to request for comments on their 5G plans, while Ambani’s Reliance Industries Ltd. said it won’t comment on the spectrum auction.While 5G offers potential in augmented reality, virtual reality, connected cars, autonomous drones, smart homes and cities, the real promise for a country like India lies in rural areas, said Prashant Singhal, global head of telecommunications at Ernst & Young.

UK lawmakers want Big Four accounting firms broken up amid audit failures

International News

Britain's "Big Four" accounting firms should be broken up to improve standards and transparency in book-keeping after audit failures at construction company Carillion and retailer BHS, British lawmakers said on Tuesday.

Parliament's business committee urged Britain's Competition and Markets Authority (CMA) to force EY, KPMG, Deloitte and PwC to legally separate audit and consultancy services.
The CMA published interim proposals last December to require a less draconian operational separation of auditing and more lucrative consultancy to avoid the former being cross-subsidised and prioritised by the latter.

The CMA has yet to publish final recommendations.

The report seeks to keep up reform momentum after past attempts to end the so-called Big Four's dominance of book-keeping made little headway.

EY, KPMG, Deloitte and PwC have sought to head off being split up by voluntarily agreeing not to offer consultancy services to audit clients..

The cross-party report said that if the CMA opts for only operational separation, it should be reviewed after three years to see if it ends cross-subsidies and improved audit quality.
"If not, we recommend that the CMA then move to implement a full structural break-up of the Big Four into audit and non-audit businesses in the UK," the report said.


 Deloitte said a structural split would harm audit quality, and could materially damage Britain's competitive position as a leading capital market. The "Big Four" are global but the reforms could only apply in Britain...Read More