Spending on mobile services at pre-Jio level
Premium- This is a big positive for Indian telecom service providers that have been reeling from the impact of tariff wars since 2016
NEW DELHI : Consumer spending on mobile services, including taxes, crossed levels seen prior to the entry of Reliance Jio, according to analysts at ICICI Securities. This is a big positive for Indian telecom service providers that have been reeling from the impact of tariff wars since 2016.
Consumer spend on mobile services after goods and services tax rose 4.2% sequentially to ₹42,000 crore in the Q3FY22, up 8% year-on-year (y-o-y) on the back of 20-25% hikes in tariffs by all carriers in the quarter, according to the brokerage house’s note to clients on 8 May. “Finally, consumer spend on telecom services has crossed pre-RJio levels (the previous high was in Q1FY17)," said Sanjesh Jain, vice president, equity research, ICICI Securities, in a note seen by Mint. Net revenues after deducting inter-company settlements, rose 4.4% quarter-on-quarter (q-o-q) and 11.9% y-o-y, to ₹39,200 crore.
MINT PREMIUM See All
Consumer spend on voice calls had reduced significantly, while spend on data had increased by almost the same proportion, according to the brokerage’s data analysis. This was evident in revenues from outgoing voice, which dropped 12% to ₹59.4 billion in the quarter compared with year-ago.