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Pricing power won’t return to the telecom sector in the short term: Fitch | The Economic Times

MUMBAI: Bharti Airtel BSE 2.66 %’s buyout of Telenor’s Indian operations is the latest sign of a shakeout in the sector after Reliance Jio Infocomm’s entry spurred incumbents to consolidate and weaker telcos to exit altogether, ratings agency Fitch Ratings said, warning that even with fewer players, pricing power won’t return to the industry in the short term.

“We retain our negative outlook on the sector for 2017, as fierce competition and rising capex will put pressure on most operators in the short term,” the ratings firm said in a release Thursday.

It added that Sunil Mittal-owned Airtel’s credit profile will remain unaffected by the planned acquisition as the benefits from additional spectrum assets will offset the spectrum liabilities taken over.

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telecom sector: Pricing power won’t return to the telecom sector in the short term: Fitch – The Economic Times.

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