Pakistan leaves behind India in Telecom Sector, Indian revenue drops by 40%. When we talk about digitization of different countries, India might be improving its IT and Telecom under sectors the Modi’s project Digital India. However, it’s not true when we confer the state of Telecom Revenues because they don’t seem to be in favor of this sector.
A rating firm “Crisil” has predicted that India’s telecom sector is about to experience another cruel financials in Q1 2018 as India Telecom revenue is about to decline by further 40%.well, that’s a very huge number. It shows that financial reporting for Q1 2018 will not go good for Indian telecom operators.
In the latest report Crisil stated that:
“The competitive intensity in the telecoms industry further intensified since January 2018 after the new entrant started passing on the benefits of cut in interconnect usage charges to customers through lower tariffs”
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Seeing the current scenario, some analyst fright that, India’s financial reporting will keep on declining with the passage of time. The reason behind these low profits margin said to be India’s Reliance Jio’s game shifting that is focusing on delivering low cost, unlimited data deals to its customers.
On the other hand, The Times of India also examined that first quarter of 2018 will hold tough results for Indian telecom sector.
“Jio’s pricing moves in the month of January 2018, impact of international termination rate (ITR) cut effective February 1, 2018, and continued ARPU down trading are likely to reflect in another quarter of sharp sequential revenue decline for the incumbents,” it said.
On the other side, Pakistan is continuously experiencing a massive growth in terms of cellular subscribers, be it 3G or 4G. The graph of telecom revenue below simply narrates the success story of efforts of Pakistani mobile operator’s regarding digital Pakistan initiatives and providing best ecosystem in the country. If we look at the graph it’s clear that Pakistan Telecom Revenues are increasing as compared to Indian telecom sector.
Well, by seeing 40% revenue decline at India Telco’s show we can say that transformation is not always a good idea.
On the other hand, India is also crawling behind when we evaluate the 4G position in the country. We can clearly see slowing down performance of this growth in the table.
|India||End of 1stQuarter||End of 2ndQuarter||End of 3rdQuarter||End of 4thQuarter||End of 5thQuarter|
|88.4 million||129.7 million||152.4 mn||174.4 mn||177.2 mn|
In an evidently huge market like India it can be deemed a major hinder for their telecom industry. Well, now the question is; does telecom sector capable to recover its position in Q2 of 2018?