At a time when the telecom sector is witnessing an intense tariff battle, industry body Cellular Operators Association of India (COAI) is set to write to the Telecom Minister seeking relaxation in the license fee payout for the fourth quarter of this fiscal.
The telecom body has warned the ministry of further erosion in the sector's financial health, sources privy to the information told CNBC-TV18.
With the Rs 303 montly plan that offers unlimited voice and data to users, the Mukesh Ambani-led Reliance Jio has brought incumbents to their knees. It has not only led to a price war, but has also kick-started consolidation in the market.
After Bharti Airtel decided to acquire Telenor's India wing, Vodafone India and Idea Cellular also confirmed on Monday, their decision to join hands, to become the biggest telecom company in the country with 42 percent revenue share.
The foursome of MTS-Aircel-Tata Teleservices-RComm are still in talks for a mega-merger.
Disclosure: RIL, which owns Reliance Jio, also owns Network18 and moneycontrol.com.
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