Telecom and aviation are considered as benchmarks of development for a country. Both sectors have witnessed massive technological advancement in the last few decades and have become the backbone of a booming economy. Every industry today depends on them, and for a developing market like India, the contribution of these sectors is even more crucial. Several areas of the country still remain untapped and need better air and telecom connectivity to realise their growth potential.
After liberalisation, the two sectors have grown massively and thanks to fierce competition, every player has been forced to maintain a competitive edge. Anil Ambani's RCom revolutionised the mobile telecom industry with CDMA-based phones. Similarly, Jet Airways started 26 years ago and brought some much-needed competition to the domestic aviation industry, which was till then dominated by national career Air India with its massive fleet and codeshare agreements. However, today, both the companies have ended up in NCLT with ballooning debt.
The second wave of growth spurred after 2004 with the entry of many new players. Telecom entrants like Tata Docomo, Uninor, Videocon and Idea were all set to bid for 2G and later 3G spectrum while Kingfisher, IndiGo, Spicejet and GoAir were slowly picking pace with new aircraft deliveries and increasing demand.
By 2008, the telecom industry hit a speed bump owing to alleged 2G scam and exceedingly high spectrum rates. Crude oil was at an all-time high and airlines were forced to operate in loss because filling up seats was becoming a priority. This is where the downward spiral started, and within a few years, older players went kaput thanks to increasing loan repayments and insufficient market demand because of the global slowdown.
24/07/19 Shivam Vahia/CNBC TV18
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After liberalisation, the two sectors have grown massively and thanks to fierce competition, every player has been forced to maintain a competitive edge. Anil Ambani's RCom revolutionised the mobile telecom industry with CDMA-based phones. Similarly, Jet Airways started 26 years ago and brought some much-needed competition to the domestic aviation industry, which was till then dominated by national career Air India with its massive fleet and codeshare agreements. However, today, both the companies have ended up in NCLT with ballooning debt.
The second wave of growth spurred after 2004 with the entry of many new players. Telecom entrants like Tata Docomo, Uninor, Videocon and Idea were all set to bid for 2G and later 3G spectrum while Kingfisher, IndiGo, Spicejet and GoAir were slowly picking pace with new aircraft deliveries and increasing demand.
By 2008, the telecom industry hit a speed bump owing to alleged 2G scam and exceedingly high spectrum rates. Crude oil was at an all-time high and airlines were forced to operate in loss because filling up seats was becoming a priority. This is where the downward spiral started, and within a few years, older players went kaput thanks to increasing loan repayments and insufficient market demand because of the global slowdown.
24/07/19 Shivam Vahia/CNBC TV18
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