According to a recent report by KPMG, the global disruption in supply chains and suspension of mobile and network equipment manufacturing due to COVID-19 outbreak, is expected to have a significant impact on the Indian telecom sector.
Further, the proposed auction for 5G services in the country will also be impacted due to the pandemic.
In its report, KPMG has stated that the deadline to discuss the adjusted gross revenue (AGR) issue should be postponed for at least a quarter for supporting the telecom sector in the long-run.
According to the report, there will be a high impact on price of materials, equipment, bandwidth availability, cash flow and network availability due to the crisis created by COVID-19. To this end, the demand for handsets and new subscriptions are expected to be impacted in the short-term.
Further, KPMG suggests that there should be relaxation on quality of service norms in the short-term, and financial aid for network expansion. Additionally, the report also recommended ease of taxes and levies on the sector for its viability.