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Experts- The New Indian Express

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CHENNAI: The fallout of a Vodafone Thought (VIL) collapse would ripple India’s telecom ecosystem and amongst these worst-hit can be telecom infrastructure firms.

Specialists say that not solely would such a collapse go away the over 180,000 tower tenancies at the moment occupied by VIL vacant, different gamers are unlikely to have re-occupied greater than half of those even a 12 months or two down the road. 

In response to scores company ICRA, VIL at the moment instructions a tenancy share of round 35% and a income share of round 36% within the towers owned by 4 firms representing a majority of India’s tower capacity- Indus Towers, ATC Telecom Infrastructure, Tower Imaginative and prescient India, and Ascend Telecom Infrastructure. In response to authorities knowledge, there are over 6 lakh cell towers in India.

Tower companies are conscious of the risk. Indus Towers — the nation’s largest tower firm — has a excessive dependency on Bharti Airtel and Vodafone Thought, who hire a big portion of its infrastructure. 

In its FY21 annual report, the corporate included the monetary well being of telcos as one of many threats. Noting that intense value competitors, regulatory payouts together with AGR dues, and spectrum funds have affected the monetary well being of operators, it identified that any deterioration within the monetary well being of its “largest prospects, Bharti Airtel and Vodafone Thought, can have an effect on their skill to pay for infrastructure companies, which in flip may adversely have an effect on Indus Towers’ revenues, money flows and total monetary situation”.

ICRA’s Sabyasachi Majumdar, Group Head & Senior Vice President, notes that if VIL is faraway from the equation, tower firms will lose round 1,80,000 tenancies.

Not all of this demand will likely be eliminated fully, nevertheless, since VIL’s 255 million current subscribers can be picked up by rivals who must develop their very own community capacities.

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