The revenue growth chart prepared by Care Ratings indicates the health condition of Indian telecom operators.
Telecom operators’ revenue fell 10.2 percent year on year in the March quarter of fiscal 2017.
1.1 percent was the revenue drop in the December quarter of fiscal 2017.
Telecom operators’ revenue rose 7.6 percent in the June quarter of fiscal 2017.
Indian telecoms achieved revenue growth 7 percent in the September quarter of fiscal 2017.
The entry of Reliance Jio and intense competition forced established telecoms to offer free or cheap voice and data offerings to retain their subscriber base.
Care Ratings said that telecoms’ sales growth is likely to remain weak in the initial period of current financial year 2017-18 on account of ongoing intense competition in the industry compared to 7-7.6 percent sales growth registered in the first two quarters of 2016-17.
“This will thus impact the revenues of the India government from the sector in the initial period of 2017-18 as license fee and spectrum usage charges (SUCs) are certain percentage of the telecoms’ revenues,” Care Ratings said.
On Wednesday, Telecom Regulatory Authority of India (TRAI) said the Adjusted Gross Revenue (AGR) for the telecom industry stood at Rs 40,831 crore (–15.6 percent) during January-March quarter of 2017. AGR includes revenues from only telecom services.
