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HomeArticlesEditorialsEconomic Crisis creating a gloom in the Industry
Sunday, 01 October 2017 06:58

Economic Crisis creating a gloom in the Industry

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Our industry is facing a business crisis due to prevailing economic conditions in the country. It all started with demonetization followed by hurried implementation of GST. Although government has advanced the date for submission of GST reports/ there is still a lot of confusion in its implementation, particularly in the small and medium industries. Moreover broadband infrastructure is not yet adequate and efficient enough to take on millions of high speed transactions. Many areas in the country do not even have access to broadband network to get connected to the GSTN. 

It is not possible to keep up with the GST implementation without engaging a trained expert or a CA. There are many technical glitches in the functioning of GSTN creating further delays. There are amendments being made every week, creating further confusion. 

There is a huge shortage of cash in the market after demonetization which has deteriorated the investment process, with the result digitization of Cable TV industry has also slowed down to great extent. Tamilnadu MSO Arasu has started its free distribution of digital STBs from 1st September but the existing Cable networks who had already gone digital on their own, are not happy as they have invested a huge sum in procuring the STBs but are finding it difficult to make consumers pay.  

The IPL global auctions has created a history with Star India winning the bid for all media rights with the highest ever bid of more than Rs 16000 crores for the combined rights of television and digital media till 2022. This is also the first time that bidders included the online giants like Facebook, Twitter and Amazone, although some of them withdrew before the final auction. 

TRAI has issued a consultation paper on telecom equipment manufacturing in India.  The issue was discussed during Indian  Mobile Congress event held in Pragati Maidan last month. it was brought out that in spite of the ‘Make in India’ drive in the last three years, not much has happened in this direction. Even Set Top Box manufacturing has not progressed in the last six years of digitization. India is still an assembling hub for mobiles and STBs due to lack of supporting policies, heavy taxation and no incentives for investments. 

TRAI has given its recommendations on District level VNO licensing which may give new opportunity to small and medium MSOs.

September also saw the culmination some major events including Infocomm in Mumbai, ITU Telecom in Korea, India Mobile Congress in New Delhi and IBC in Amsterdam. IBC saw the launch many new technologies, mostly cloud based and in the field of virtual reality and IoT. 

We wish all our readers a very Happy Diwali and cheerful festive season ahead.

—— Lt. Col. (Retd.) K K Sharma


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