TELECOM SECTOR REVENUES BACK AT PRE-JIO LEVELS

NEW DELHI: The revenues of India’s telecom sector have recovered to levels seen in the years before Reliance Jio Infocomm Ltd’s entered the field in September 2016, causing massive disruptions with nearlyfree voice and data offers that forced others to slash prices.

According to data released by the Telecom Regulatory Authority of India (Trai), net mobile revenues rose 4.5% sequentially to $25 billion in the December quarter. The last time the sector had earned $25 billion was in April-june of calendar year 2016.

The revenues of the sector declined to the lowest of $18 billion in the fiscal year 2018-19, forcing some players to exit their businesses, and others to merge with bigger companies. For instance, Vodafone India Ltd and Idea Cellular Ltd completed their merger in August 2018 to continue business amid mounting debt and shrinking revenues. The average revenue per user (Arpu) of Bharti Airtel Ltd plunged to ₹100 per month in Q2FY19, from ₹196 in the first quarter of fiscal 2017.

Before the merger, Idea’s Arpu stood at ₹181 and it fell to a record-low of ₹88, for the combined entity, in July-september FY19.

Jio’s Arpu, in the second quarter of financial year 2019, was at ₹131.7.

“Trai’s latest disclosures reveal that net mobile revenues in India rose 4.5% quarter-onquarter to an annualised $25 billion in Q3FY21. This is in line with the peak levels seen before Jio’s entry,” Jefferies equity research said in a report.

Though the sector revenues are up 40% from the lows of Q4FY19, they are still marginally lower, about 1%, than the historical high reported in the June quarter of FY17, CLSA said in a report.