Sunil Bharti Mittal, the chairman of Bharti Airtel, has said that telecom companies in India need to raise tariffs in order to improve their return on capital. Mittal noted that the telecom industry in India has been facing a challenging environment, with intense competition and high debt levels.
Mittal pointed out that the return on capital for telecom companies in India is currently very low, and that this is not sustainable in the long term. He suggested that companies need to increase their tariffs in order to improve their financial performance and attract investment.
Mittal's comments come amid growing concerns about the financial health of the telecom industry in India. Several companies, including Vodafone Idea, have been struggling with high levels of debt and have been looking for ways to improve their financial position.
In recent years, the telecom industry in India has been characterized by intense competition and low tariffs, with companies engaging in price wars in an effort to gain market share. This has put pressure on the financial performance of companies in the industry and has led to concerns about the sustainability of the current business model.
Overall, Mittal's comments suggest that telecom companies in India may need to shift their focus from gaining market share to improving their financial performance, which could involve raising tariffs and improving their return on capital. This could help to create a more sustainable business environment for the industry in the long term.
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