India Ratings & Research revised its outlook on the telecom sector from stable to 'stable-to-negative' for the current year. Tanu Sharma, telecom analyst with the research house, says this is due to the increase in the intensity of competition that is likely to happen post the Rel Jio launch. She believes pressure on the credit profiles of telcos is likely to increase. According to her, despite the fact that telcos are already debt-laden, they will have to increase investment to tackle the call drop problem and strengthen infrastructure further.
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