Business Other News 19 Oct 2016 Telecom companies ru ...

Telecom companies rush to fix payment plan

DECCAN CHRONICLE.
Published Oct 19, 2016, 1:26 am IST
Updated Oct 19, 2016, 4:10 am IST
The entry of Jio will threaten the major source of income of the telecom companies in FY 2017.
The companies are identifying the right long term funding mix to optimise the cost of funds and the monetisation of non-core assets to reduce the debt burden.
 The companies are identifying the right long term funding mix to optimise the cost of funds and the monetisation of non-core assets to reduce the debt burden.

Mumbai: With barely two days left for the telecom companies who bid for spectrum to make the first upfront payment totalling Rs 32,000 crore, the companies are identifying the right long term funding mix to optimise the cost of funds and the monetisation of non-core assets to reduce the debt burden.

These will be crucial for their credit profile. Incumbent operators, says India Ratings and Research, have the existing balance sheet strength to raise funds from the domestic or global markets.

 

Ind-Ra, however, cautioned that it expects debt burden for the top telcos to rise, with the increase in spectrum and non-spectrum debt capex like networks that need to be ramped up. The entry of Jio will threaten the major source of income of the telecom companies in FY 2017.

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