Post

Reliance Jio's Price Wars Affects India's Telcos

Reliance Jio's Price Wars Affects India's Telcos

By offering free voice services for life, and free data services over a six-month period, India’s Reliance Jio telecommunications company triggered a price war that affected the rest of the country’s telecom providers. Profits have fallen, and a phase of consolidation has begun in India’s mobile market. A merger between Vodafone India and Idea, that is pending clearance from Indian authorities, will overtake Mumbai-based Bharti Airtel Ltd., to become a new market leader.

Airtel’s first-quarter net profit fell to $56 million, from $195 million in the year-earlier period. Airtel was forced to reduce the prices of data and voice services to prevent customer churn. On a more positive note, its base of data customers grew by 4.5%, with data usage up 37%.

Earnings reports show drops in average revenue per user across all players. Airtel’s monthly average revenue per user fell from $2.9 a year ago to $2.4 in the most recent quarter. Idea’s is down from $2.7 to $2.1 over the same period. Significantly, both Airtel and Vodafone added new customers in the first quarter. Vodafone picked up another 4.4 million subscribers, while Airtel gained as many as 7.7 million. Idea, however, lost 6.4 million customers in the same quarter, reports LightReading.

Ardom Telecom Towers

 

 

Share

About Amritt

Who We Are

Small or big, your business will love our financial help and business consultations! We are happy when our clients are too… Actually, this is quite simple to achieve – because each time we help them in sorting out different accounting intricacies or save the day before filing the taxes, they are happy indeed! And so are we.   

We have over Twenty years of experience helping our clients succeed in India

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Blog
Page
Dictionary
Comparisons
Capabilities
India Business Guide
Services
Private
Speaking
Insights
White Papers
News
Newsletters
Clients
Case Studies
Companies In India
Webinars
Presentations
Industries