Declining ARPU, shrinking profits may make survival hard for smaller telcos

Telenor, Tata Tele (Mah), Aircel likely to face price pressure, as industry heads for consolidation

As plummeting ARPU (average revenue per unit) and shrinking profits make survival difficult for smaller players in the telecom business, the industry is poised for consolidation in the coming years, the process for which began with the announcement of Idea Cellular and Vodafone's merger.

Bharti Airtel, the country's largest telecom operator, reported a 55 per cent fall in its net profit for the third quarter (Oct-Dec) at Rs 504 crore. The decline in income can be attributed to the impact of Reliance Jio's entry and its free voice and data offers.

During the last three quarters of the current financial year (2016-17),