Telecom tariff hikes to ring in improved debt metrics in next fiscal: ICRA

Telecom specialist co-ops (telcos) are required to dial in next round of tax climbs throughout the following a couple of quarters which is probably going to drive income development in the following monetary year (FY2021-22), as indicated by speculation data firm ICRA.

In the light of higher financing prerequisites emerging from sizeable compensation outs towards changed gross income (AGR) liabilities, range buy, ordinary income share with the public authority and closeout portions (which start from FY23), it is basic for the players to leave on reasonable and sizeable development in the normal income per client (ARPU).

ICRA said the ARPU extension will bring about income development and given the high working influence, the edges are additionally expected to extend. These measures are required to convert into progress in the obligation inclusion measurements of the business, even as the general obligation stays high.

"Levy climbs and upgradation of supporters from 2G to 4G is relied upon to bring about progress in ARPU to around Rs 220 in the medium term," said Anupama Arora, Vice President and Sector Head for Corporate Ratings at ICRA.

She said the business income is probably going to develop by 11 to 13 percent throughout the following two years with working edges improving to around 38 percent for FY22.

Improvement in income age combined with control in capex force will restrict the reliance on steady outside borrowings for activities. Nonetheless, the expansion of AGR liabilities to obligation and the following round of range sales will go about as a dampener.

ICRA expects all out industry obligation to stay raised at Rs 4.7 lakh crore as on March 31, 2022. "While some improvement is normal in the obligation inclusion markers following the improvement in working measurements, they keep on excess frail," said Arora.

Ankit Jain, Assistant Vice President at ICRA, said the area is moving towards the expression point where the following period of development will be driven by the non-telco organizations, which incorporate undertaking business, cloud administrations, computerized benefits and fixed broadband administrations.

Covid-19: Netflix to reduce traffic on networks to mitigate congestion

Video streaming major Netflix on Tuesday said it will reduce traffic on telecommunications networks by 25 per cent while maintaining the quality of service for users in India, as part of its efforts to help mitigate network congestion amid the coronavirus pandemic.
Companies like Amazon Prime Video are also temporarily lowering bit rates - a measure of how much data is being transferred - to ease pressure on telecom network infrastructure.
Consumption of digital content has gone up manifold as people are forced to stay indoors as almost the entire country is under lockdown to contain the spread of the deadly COVID-19.
"Given the crisis, we've developed a way to reduce Netflix's traffic on telecommunications networks by 25 per cent while also maintaining the quality of our service. So consumers should continue to get the quality that comes with their plan - whether it's Ultra-High, High or Standard Definition," Netflix VP Content Delivery Ken Florance said in an emailed statement.
He added this will provide significant relief to congested networks, and the measure will be deployed in India for the next 30 days.
The company, which has over 167 million users globally, has already undertaken similar measures in Europe. It doesn't provide country-specific subscriber numbers.
Netflix typically has many different streams for a single title within each resolution. This action would result in removal of the highest bandwidth streams, and so, subscribers will continue to have access to the service they have paid for (Ultra-High Definition, High Definition or Standard Definition) depending on the device they use.
In India, Netflix has a significant number of subscribers on the Mobile Plan which is Standard Definition.
Netflix's rival, Amazon Prime Video on Monday had said it has begun efforts to reduce streaming bitrates in India. Bitrate usually determines the size and quality of video and audio files. Higher bitrate indicates better quality.
The Cellular Operators' Association of India (COAI) had written to the government urging issuance of instructions to streaming platforms like Netflix, Amazon Prime Video, and others to initiate measures that will ease pressure on network infrastructure, which is needed for "critical" functions at this juncture.
"We support the need for careful management of telecom services to ensure they can handle the increased internet demand with so many people now at home full-time due to COVID-19…In India, we've already begun the effort to reduce streaming bitrates whilst maintaining a quality streaming experience for our customers," an Amazon Prime Video spokesperson had said.

A Hotstar spokesperson had said said the company's video streaming is based on adaptive bitrate streaming, which ensures that it is "lean" in internet consumption. However, the company said it is "prepared to reduce the bitrate for our HD streams, should the need arise".

Distressed employees of BSNL write to PM Narendra Modi, call for revival

International News

Distressed employees of cash-strapped Bharat Sanchar Nigam (BSNL) on Monday urged Prime Minister Narendra Modi to revive the company and make it a strong telecom operator. In a letter to Prime Minister Narendra Modi, the staff of the beleaguered company said, “We heard that the finance ministry is proposing the closure of BSNL, instead of its revival.”
“It is felt that those officers involved in the process may not get an opportunity to learn about the critical role played by BSNL in nation building and in implementing government schemes and projects,” general secretary of BSNL Union Sebastin. K said in the letter.
Stressing the role played by the company during critical situations, the employees have sought relief from the government. Sebastin said during the recent developments in Jammu & Kashmir, the government is fully dependent on BSNL landline and mobile for providing services to a few government functionaries and security forces in Kashmir valley, despite the company incurring huge losses.
No other operator is allowed to provide services due to security reasons. BSNL is providing telecom services in remote parts of the country and maintaining 17,000 to 18,000 exchanges, incurring Rs 3,000 to Rs 4,000 crore losses every year. Otherwise, these villages will be cut off.
The aggrieved employees said, “A wrong notion has been created by the government, management and the media that the main reason for BSNL loss is its employee cost.”

The letter said, BSNL provides direct employment to several people and most of the operations and maintenance activities are done by its own employees, whereas other operators outsource majority of their works...Read More