Intense tariff war and high taxes are expected to squeeze Indian telecom operators, leaving a gaping Rs 1,20,000 crore deficit between the industry’s earnings and its debt/payment commitments this year, says debt-laden Reliance CommunicationsBSE -0.48 %.
With annual interest payments, loan re-payment obligation, spectrum-related outgo and capex expected to add up to a Rs 1,62,000 crore tab, the operators could find it tough to meet their debt and payment needs with Rs 43,000 crore of EBITDA or operating profits in 2017-18.