Entry of Reliance Jio in September 2016 had changed the entire scenario of telecom sector in the country forcing call and net prices crashing down. This has put telcos like RCom out of business, and leading players like Airtel reeling under massive revenue loss.
Reacting on the current scenario, Gopal Vittal, MD and CEO, India & South Asia, said, “Pricing will have to lift but, at this point of time there is fight for market share and that being driven by new entrant and therefore pricing remains compressed."
He added: "I would say pricing today is at deeply compressed level that is why we have seen the kind of consolidation that has happened in last 12 months. This level of pricings is clearly unsustainable.”
Vittal said: "We have revenue sitting above this level. This has resulted in ARPU (average revenue per user) erosion. If you look back over the last 3-4 quarter, the kind of ARPU erosion you have seen, we are unlikely to see that kind of ARPU erosion going forward."
Airtel registered a sharp fall in its consolidated net profit for the seventh straight quarter to Rs 305.8 crore for the three month period ended December 31, 2017 on account of tariff war in the industry.
He added: "I would say pricing today is at deeply compressed level that is why we have seen the kind of consolidation that has happened in last 12 months. This level of pricings is clearly unsustainable.”
Vittal said: "We have revenue sitting above this level. This has resulted in ARPU (average revenue per user) erosion. If you look back over the last 3-4 quarter, the kind of ARPU erosion you have seen, we are unlikely to see that kind of ARPU erosion going forward."
Airtel registered a sharp fall in its consolidated net profit for the seventh straight quarter to Rs 305.8 crore for the three month period ended December 31, 2017 on account of tariff war in the industry.
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