Statsguru: Telecom sector is going through a tumultuous period

The sector's gross revenues contracted by 7% in the quarter ended September, over the same period in the previous year

The telecom sector is going through a tumultuous period. The sector’s gross revenues contracted by 7 per cent in the quarter ended September, over the same period in the previous year. In the third quarter, too, telcos reported a contraction in top line. For instance, Idea’s revenues from operations fell by 25 per cent in Q3FY18. Though, on a month-on-month basis one can observe a pick-up, as shown in Chart 1.
 
With Reliance Jio unleashing a price war, the sector's average monthly revenue per user has collapsed (Chart 2). That the decline has occurred despite a sharp spurt in