Telecom revenue fell 10% in 2018 over cutthroat competition and tariff war

The telecom industry’s adjusted gross revenue, an indicator of the sector’s financial health, was down by 10.18 per cent in 2018 as incumbent mobile service providers — Bharti Airtel and Vodafone Idea — battled stiff competition from Reliance Jio, according to official data.

The Telecom Regulatory Authority of India (Trai) on Wednesday said gross revenue (GR) declined from Rs 2.55 trillion in 2017 to Rs 2.37 trillion in 2018, with yearly decline rate of 7.13 per cent. Adjusted gross revenue (AGR) also declined from Rs 1.60 trillion in 2017 to Rs 1.44 trillion in 2018, with yearly decline rate of 10.18 per cent.

Experts believe that the reason for the fall in AGR is cutthroat competition and a tariff war in the sector after the entry of Reliance Jio.