‘Pric­ing Pres­sure to Stay as Long as Jio Of­fer Con­tin­ues’

The Economic Times - - Companies - Our Bureau.

New Delhi: The launch of free ser­vices by Re­liance Jio In­fo­comm has put pres­sure on tel­cos and the sit­u­a­tion may im­prove with con­sol­i­da­tion in the in­dus­try, rating com­pany ICRA said, re­ports

Pric­ing pres­sure is ex­pected to con­tinue as long as the Mukesh Am­bani-owned telco of­fers ser­vices for free, the unit of Moody’s In­vestors Ser­vice said in a state­ment on Tues­day. “The launch of free ser­vices by Jio has ex­erted pres­sure on the oper­at­ing met­rics of all tel­cos, wherein both voice and data ARPUs (av­er­age revenue per user) and re­al­i­sa­tions have slipped,” said Harsh Jag­nani, sec­tor head and VP of cor­po­rate rat­ings at ICRA.

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