The fundamentals of country's telecom sector remain strong and growth drivers like increase in broadband penetration, government's fiberisation push, low ARPUs and upcoming 5G wave underscore untapped potential in the market, according to Deloitte India.
However, huge debt on the balance sheet of telcos continues to be an overhang, and the financial position of industry must improve for investors to make the most of the upside, Sathish Gopalaiah, Partner, Deloitte India said.
"No doubt that there is a significant interest from investors in the sector. If you look at the fundamentals, the internet penetration globally and in India, and headroom for growth, the cost of data per GB here being lowest in the world, need for home and enterprise connectivity, the huge push by government on Digital India and computer engineering careers the only way these things will move from here is going up...it has to improve and increase," Gopalaiah told PTI.
Once 5G comes in, connected cars, factories, and other use cases will fuel growth, and all these growth drivers underscore the tremendous market potential which is currently untapped.
However, huge debt on the balance sheet of telcos continues to be an overhang, and the financial position of industry must improve for investors to make the most of the upside, Sathish Gopalaiah, Partner, Deloitte India said.
"No doubt that there is a significant interest from investors in the sector. If you look at the fundamentals, the internet penetration globally and in India, and headroom for growth, the cost of data per GB here being lowest in the world, need for home and enterprise connectivity, the huge push by government on Digital India and computer engineering careers the only way these things will move from here is going up...it has to improve and increase," Gopalaiah told PTI.
Once 5G comes in, connected cars, factories, and other use cases will fuel growth, and all these growth drivers underscore the tremendous market potential which is currently untapped.
No comments:
Post a Comment