After Reliance Jio’s entry Telecom sector revenues hit 20 percent

The income of the telecom sector is reduced by 20 percent in the last quarter after the entry of Mukesh Ambani led firm Reliance Jio’s (RJio) in September last year.

While the business posted a topline of Rs 43,509 crore in the final quarter of monetary 2017 when contrasted with Rs 54,961 crore in Q1 of the same financial, it requires a speculation of Rs 2 lakh crore in the following three years for setting up new locales, optic fiber system and procurement of range.


During FY2012-17, Airtel has contributed Rs 125,000 crore towards aggregate CapEx and range cost. Out of this, Rs 46,000 crore was raised as the obligation and Rs 79,000 crore as value injected from working income. Just Rs 4,000 crore profit was paid out of money produced from the business while rest was infused back as value, according to the presentation.

This came few days after RJio alleged in an IMG meeting that current players must contribute the amount of up to Rs 1,25,000 crore in their business instead of approaching the government for a bailout bundle. RJio had additionally claimed that obligation to new value implantation proportion was 32.8x for Airtel, 8.6x for Idea and 9.3x for Reliance Communication, as indicated by individuals near the development.

before the IMG on Friday, Idea Cellular and Vodafone likewise made their submissions.


Idea said it supports lower data prices but the government policy framework should have to allow operators to recover their network costs. Vodafone said that call interface charge, right now at 14 paise, is as of now underneath cost.

All operators favored bringing down of range utilization charges and the universal service obligation USO levy, and the ensuing eliminating of the same. The business is the view that different duties like permit expense, range utilization charges, and USO need to be subsumed by GST.

IMG has as of now met senior officials from Reliance Jio, Reliance Communication, Tata Teleservices and Aircel except state-run telecom administrators BSNL and MTNL.

Sectoral watchdog Telecom Regulatory Authority of India (TRAI) had additionally met every one of the administrtors on Thursday to examine the industry’s financial health.