According to India Ratings and Research (Ind-Ra), Indian telecom sector’s revenue increased by 9 per cent on quarter-on-quarter (QoQ) basis during the third quarter of FY20 (Q3 FY20). This revenue increase can be attributed to tariff hikes, which has more than offset the decline in the subscriber base during Q3 FY20.
Ind-Ra has highlighted that after almost two years revenue grew across all the major telecom companies in Q3 FY20.
However, the ratings agency is of the view that this momentum needs to be monitored as change in revenue is not just dependent in change in tariffs. In fact, even after the tariff hikes, there is still significant competitive pressure on telcos as Reliance Jio’s data tariffs currently are 25 per cent lower than those of Bharti Airtel and Vodafone Idea.