Crisil, a rating firm has predicted that the financial reporting for Q1 2018 will not go good for Indian telecom operators. The India’s telecom sector are about to witness another harsh financials in Q1 2018 as India Telecom revenue is about to decrease by further 40% which is a very huge number.
When we discuss the digitization of different countries, India might be boosting the bloom of IT and Telecom under the Modi’s project Digital India but it is not true when we discuss the state of Telecom Revenues as it stills remains a challenge for them.
Crisil in its latest report stated that:
“The competitive intensity in the telecoms industry further intensified since January 2018 after the new entrant started passing on the benefits of cut in interconnect usage charges to customers through lower tariffs,
These low profits margin are faced by India’s telecom sector is due to Reliance Jio’s game changing focus on delivering low cost, unlimited data deals to its customers. Some analyst fear that India’s financial reporting will keep on decreasing time by time.
The Times of India also analyzed that first quarter of 2018 will bring challenging results for Indian telecom Market.
“Jio’s pricing moves in the month of January 2018, impact of international termination rate (ITR) cut effective February 1, 2018, and continued ARPU down trading are likely to reflect in another quarter of sharp sequential revenue decline for the incumbents,” it said.
Pakistani Telco’s have every Increasing Subscriber’s Growth
On the other Hand Pakistan has continuously witnessed a huge growth in terms of cellular subscribers, be it 3G or 4G. The graph of telecom revenue below simply narrates the success story of efforts of Pakistani mobile operator’s regarding digital Pakistan initiatives and providing best ecosystem in the country. From the graph it is evident that Pakistan Telecom Revenues are every increasing.
40% revenue plunge at India telcos show transformation is not always good idea
Airtel launched 4G mobile broadband services in India on 10 April 2012, becoming the first company in India to offer 4G services. While, 4G subscribers laggard with about 8 million 4G subscribers until Reliance Jio launched there 4G MBB services to data starved India in September 2016. Since then India’s MBB market saw a meteoric rise until, this growth leveled out in the last quarter. While, in a period of just 16 months, Reliance Jio became a 4G MBB leader with 177 million subscribers at the end of December 2017. The leveling out of growth of 4G subscribers in a much hyped Indian market has made the industry concerned about its future growth and the huge investments made on the basis of a projected linear growth that seems to no longer exist.
India is also lagging behind when we analyze the 4G state in the country. The GSMA intelligence figure shows the abrupt increase of 4G subscribers in India for the last five quarters, is stagnant now. The slowing down of this growth is evident from the table. After a major growth in 4G subscriber in first four quarters it leveled out in the last quarter with an increase of just 3 million. In a supposedly big market like India it can be considered a major setback for their telecom industry.
|India||End of 1stQuarter||End of 2ndQuarter||End of 3rdQuarter||End of 4thQuarter||End of 5thQuarter|
|88.4 million||129.7 million||152.4 mn||174.4 mn||177.2 mn|
The Question is will India’s telecom sector be Able to regain It’s Position in Telecom Sector?