Telecom Lead India: Bharti Airtel CEO Sanjay Kapoor said the
new TRAI chairman Rahul Khullar should focus on the sustainability of the telecom
industry.
There should be more transparency in the entire system. All
actions should be focused on sustainability of the sector. If the Indian
economy needs to grow faster, the country needs to develop and strengthen a
virtual infrastructure with the assistance of telecom sector. Virtual
infrastructure can bring more business to India,” said Sanjay Kapoor, CEO –
India & South Asia, Bharti Airtel.
Airtel CEO’s comments on sustainability is very significant
as the telecom industry is facing a tough task to achieve both revenue and
profitability targets.
Indian telecom operators profit to decline 85% in 2011-12
3G is set to take toll on the financial health of Indian
mobile industry. Profit after tax of Indian telecom services segment is
expected to decline 85 percent in 2011-12, according to India Government’s
Economic Survey. The report said the significant decrease in profit is mainly
on account of the sharp rise in the industry’s interest outgo and higher
depreciation charges due to the heavy borrowings for acquiring 3G licences and
rolling out 3G services.
According to Kapoor, recent research reports have indicated that
a 10 percent increase in mobile penetration could lead to 1 percent increase in GDP,
and a 10 percent increase in mobile broadband penetration could deliver a 1.4
percent increase in GDP.
The focus of the new chairman should be to assist the
telecom to grow again. Telecom is so important for the entire economy,” Kapoor
added.
Indian telecom sector to employ 1 crore by 2012
The Indian telecom sector is set to provide employment to
around one crore people by 2012. This figure would include 28 lakh direct jobs
and around 72 lakh indirect jobs, according to a recent study commissioned by COAI and
conducted by research firm, PwC.
Contributing nearly two percent to the GDP, the Indian
telecom industry is set to exceed $30 billion by 2013, according to a report by
Gartner, which states that the industry is growing at an annual CAGR of 12.5
percent.