A rise in telecommunications tariffs is necessary because pricing is unsustainable a market condition to motivate the decision

A rise in telecommunications tariffs is necessary because current tariffs are “unsustainable” and market conditions will be visible before a call is taken, said telecommunications czar and chairman of Bharti Airtel Sunil Mittal.

On whether or not Chinese telecom equipment suppliers will be allowed to participate in next-generation 5G networks, Mittal said the larger issue was the country’s decision and asserted that “what the country decides will be accepted by everyone “.

When it comes to tariffs, the company has already taken a clear stance on the matter, he said, adding that Airtel strongly believes tariffs need to increase.

“… the current tariffs are not sustainable, but Airtel cannot move without the industry moving or the regulator moving,” Mittal told PTI in an interview.

The industry needs a price hike at some point, he said, adding “we’ll have to see market conditions to do it.”

Mittal was responding to a question about the timing of what appears to be an imminent industry-wide tariff hike in the Indian market and whether Airtel will launch it or wait for its competitors to take their first step .

The leader of the Bharti group – which has repeatedly drawn attention to the high taxes and levies in the sector – added that telecommunications being a “capital intensive industry”, it is necessary to invest regularly in networks. , spectrum, towers and technology. was therefore important for the industry to be “sustainable”.

“This industry needs tons of money, it’s a capital intensive industry … buying spectrum, installing networks, fiber, radio, towers … it’s an industry that continually invests, Mittal said.

Unlike the establishment of steel or power plants, or refineries, the telecoms sector needs a continuous and recurring supply of capital.

You have to spend billions of dollars every year again to get new technology, more coverage, more capacity so this industry has to be sustainable. The government wants India to be a digital India and people to be connected. I think we will have to leave it in their safe hands, he said.

As it stands, the telecommunications policy and the new digital communications policy indicate that maximizing revenue is not the goal, he added.

Mittal has said 5G spectrum prices are “unaffordable” but, in the same breath, added that India has ample time for its 5G roadmap.

The prices for 5G spectrum are currently unaffordable and India has the time. No one in the world is far from 5G even the countries of Europe the UK, the US. .. 5G coverage is still very limited, so all is well, India is not late, he said.

Asked when he expects full-fledged 5G deployments in India, Mittal said, The point is, when you need it connected cars, robotic surgeries, that’s what it is. which he needs. So, do we really have this on fire, at the moment? I do not think so. “

When asked if 2G will continue to exist in India even with the advent of the next generation of technology, Mittal said Airtel has already disabled the entire 3G layer and will continue to move 2G customers to 4G.

As soon as we can we will continue to move our 2G customers to 4G, that process is underway. This is the process, it just continues to evolve, organically, just monthly, Mittal added. .

On whether Chinese telecom equipment companies will be allowed to participate in 5G, Mittal said, It’s not about being allowed or not. It’s a matter of the country’s decision. .. whatever the country decides, will be accepted by everyone “. .