Jio effect: 5 things that show telecom sector will never be the same again

Trai, telecom, interconnect, Vodafone, idea, Airtel, Jio

Latest News – If the December quarter was bad for the telecom sector, the March quarter could be worse. The full impact of Reliance Jio’s (RJio) service will be felt from the March quarter as people had still been trying out the service and the size had been growing to peak levels towards the end of FY16. On every parameter — realisations, volumes, revenues, margins or debt — companies are likely to report numbers that are at multi-year lows/peaks.

Here are five things from the March quarter that stand out:

ARPU is in, all other metrics are out

The launch of free offers and attractive packages has made a number of operational metrics like data revenue per megabyte and average revenue per minute redundant. Harsh Jagnani of ICRA says that given the bundled offers by all telecom operators, the ‘primary metric which will be tracked’ going ahead will be average revenue per subscriber or ARPU. RJio’s bundled offers, allowing users unlimited calls and data usage, is the (Read More)


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s