Reliance Jio Infocomm’s free blitz cost the Indian telecom sector more than Rs 7,000 crore.
The telecom industry saw its revenue decline 5 percent in the last financial year, the first time ever, data released by the Telecom Regulatory Authority of India (TRAI) showed.
The revenue of Bharti Airtel Ltd. and Idea Cellular Ltd. grew in the half year ended September last year, but fell in the following six months after Reliance Jio launched services, according to Bloomberg data. Vodafone India’s service revenue also rose in six months ended September, but fell for the year ended March, according to its financial statement.
The country’s newest telecom service provider offered free data and voice services for seven months, before it start charging from April this year. Reliance Jio’s entry forced incumbents to either ramp up their offerings at cheaper rates, or lose subscribers, leading to a rise in the top three telecom companies’ market share.
However, in absolute terms, the adjusted gross revenue of the top three companies fell by 10 percent to Rs 24,100 crore. It fell 14 percent to Rs 29,900 crore for the industry.
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