Pakistan beats India in Telecom Sector – Research Snipers

Pakistan beats India in Telecom Sector

It is being reported by Crisil a rating firm that the India Telecom Revenue in Q1 2018 will go down by 40%.

Apparently, India is promoting its IT and Telecom sector under Modi’s project Digital India but the telecom revenues in the country portray drastic statistics.

Crisil in it’s the recent report said,“The competitive intensity in the telecoms industry further intensified since January 2018 after the new entrant started passing on the benefits of a cut in interconnect usage charges to customers through lower tariffs.”

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The reason for these low profits is mainly because of Reliance Jio’s focus on providing cheap, unlimited data offers to its users. As per some experts, the financial reporting in telecom sector of India will keep going down.

As per The Times of India,“Jio’s pricing moves in the month of January 2018, the 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.”

Now let us look at Pakistan’s telecom industry. Pakistan has witnessed a continued growth in its telecom industry. The number of cellular users, 3G, 4G subscribers in Pakistan are increasing every day. Pakistan telecom revenues are just rising as shown in the graph.

India's Telecom Sector to Witness 40% Revenue Plunge

Thus Pakistan’s telecom industry has beaten Indian telecom industry.

On 10th April 2012, Airtel launched 4G mobile brand services in India. It was the first company in India to offer 4G services. In September 2016, Reliance Jio launched 4G MBB services in India. A sudden rise was seen in MBB market. In just 16 months Reliance Jio became a leader in 4G MBB service having 177 million users by December 2017.

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Now it is seen that the increase in 4G subscribers in India, in the past five quarters has stopped now. In such a huge Indian market, it is quite a setback that the 4G users are not increasing anymore and the Indian telecom industry is suffering.

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