Key highlights :
- Reliance Jio free services caused Adjusted Gross Revenue of telecom operators to fall 15.6% y-o-y.
- AGR of the industry stood at Rs 40, 831 crore during the January-March 2017 quarter.
- Revenues of telcos declined by 1.1% and 10.2% y-o-y in the December2016 quarter and the March 2017 quarter, respectively.
For months now the Reliance Jio freebies debacle have been making headlines which led to price wars among the telecom operators or accelerated consolidation in the industry.The Mukesh Ambani backed company was first launched in September 2016 and gained subscribers on the back of free services under its Welcome and Happy New Year offers.In order to defend subscriber base, incumbent operators started copying the newcomer and offered similar free offers on voice and data calls last year.However this has caused a 15.6% year-on-year fall in revenues for the telcos, Bhagyashree C. Bhati, analysts at Care Ratings said on July 6.
According to the data released by the Telecom Regulatory Authority of India (TRAI), the Adjusted Gross Revenue (AGR) for the telecom industry stood at Rs 40,831 crore during January-March 2017 quarter.