The karmic wheel of life says that whatever you do, you get it back. Reliance Jio invested INR 150,000 Crores to create the longest fibre optic network in the country. If reports are to be believed, the investment is over two times more than the combined investment of operators such as Airtel, Idea and Vodafone in the 4G domain.
Within a short span of time, Reliance Jio was able to create the buzz in the market with its affordable data plans. It also pushed the telcos to invest more, to think more and to put more efforts. And it’s because of the karmic reaction that Reliance Jio could be the only profit making telecom operator for the third quarter.
On the other hand, Bharti Airtel has registered a 33% drop in its Q3 net profits. According to telecom analysts, not only Bharti Airtel but Idea, Vodafone would also likely to report losses in Q3 on account of IUC (Interconnection Usage charges).
“A regulatory fiat in the form of a cut in domestic IUC rates had exacerbated industry ARPU (average revenue per user) decline in the December quarter, and the recent reduction in international termination rates will further accentuate this decline,” Gopal Vittal, MD & CEO, India & South Asia at Airtel, said in a statement.
At the same time, Reliance Jio is likely to register profit driven by subscribers base, affordable pricing model and rise in IUC.
Reliance Jio has registered an operating profit for the first time in the September quarter. It had recorded net losses to the tune of INR 2.71 billion on revenue of INR 61.5 rupees.