The highly stressed Indian telecom industry has some good news for the New Year, as Fitch's ratings predict stability for the sector in 2018. It was dubbed as ‘negative’ in 2017.
According to Nitin Soni, director at Fitch Ratings, the average revenue per user (ARPU) will increase by 5-10% in 2018. He added, “Telcos will stop promotions and discounts and focus on return on investments."
As a matter of fact, ARPU in the September quarter had come down by 40%, compared on a year-to-year basis because of the severe tariff wars that erupted after Reliance JioInfocomm's (Jio) entry in 2016.
According to Fitch, the industry, which has become a three-player market, will garner 90% of revenue market share, against present 85% after smaller players exit, leaving the larger ones with more control.
As a matter of fact, ARPU in the September quarter had come down by 40%, compared on a year-to-year basis because of the severe tariff wars that erupted after Reliance JioInfocomm's (Jio) entry in 2016.
According to Fitch, the industry, which has become a three-player market, will garner 90% of revenue market share, against present 85% after smaller players exit, leaving the larger ones with more control.
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