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Tariff hikes may ensure a good Q4 for Jio: lockdown poses challenges for telcos despite traffic surge

Jio is likely to clock healthy growth in Q4 earnings after the tariff hikes in December, but key metrics — including Arpu — will remain under pressure. Meanwhile, the lockdown will impact earnings despite a spike in data traffic going forward, because of lower gross subscriber additions, lower revenue from feature-phone subscribers, and decline in international roaming revenues.
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rishitejpal
30 Apr 2020 7 Mins Read 2 comments
Mukesh Ambani, chairman, Reliance Industries BCCL
Mukesh Ambani, chairman, Reliance Industries
It’s likely to be a healthy quarter for telecom companies. A near-synchronous hike in tariffs by the industry will ensure a bump up in earnings and average revenue per user (Arpu). A surge in data traffic by the end of March, with the lockdown in place, will add to the top line. But the pandemic is not likely to be
a surge in data usage (in the range of 20%-25% according to industry estimates), all the factors mentioned here will also play a significant role in determining how the future of industry looks. There are many unknowns and it will be interesting to monitor how the telecom industry navigates these challenging times. ( Graphics by Sadhana Saxena)
It’s likely to be a healthy quarter for telecom companies. A near-synchronous hike in tariffs by the industry will ensure a bump up in earnings and average revenue per user (Arpu). A surge in data traffic by the end of March, with the lockdown in place, will add to the top line. But the pandemic is not likely to be a surge in data usage (in the range of 20%-25% according to industry estimates), all the factors mentioned here will also play a significant role in determining how the future of industry looks. There are many unknowns and it will be interesting to monitor how the telecom industry navigates these challenging times. ( Graphics by Sadhana Saxena)

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