Mumbai, (IANS) Reliance Group Chairman Anil Ambani on Tuesday said the telecom sector is under stress and banks are not extending any credit.
"The Reserve Bank of India in April asked all banks to be cautious on telecom. Banks are now not extending any credit," Ambani told the Reliance Communications (RCOM) annual general meeting here.
"The sector has transformed India as per late Dhirubhai Ambani's vision... The sector has brought mobility to a billion people, with only one winner - the customer," he added.
He, however, said there was a sharp erosion in the competitive landscape now and that some overseas operators have left the country.
"Over the last year, operator after operator has seen value erosion and large losses. I call this creative destruction of a sector, normally passed off as a disruptive factor," Ambani added.
He said the telecom sector needed a minimum of Rs 100,000 crore a year to expand and maintain quality of service.
"Telecom sector is moving towards a monopoly, oligopoly: Is that what the customers want? As far as RCOM is concerned, we have a transformation programme in place and running."
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