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In telecom sector, ARPU to continue to slip in Q4 FY18, says Edelweiss

In telecom sector, ARPU to continue to slip in Q4 FY18, says Edelweiss

In telecom sector, ARPU to continue to slip in Q4 FY18, says Edelweiss
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By Reema Tendulkar  Apr 10, 2018 4:23:51 PM IST (Updated)

Bharti is likely to post its first quarterly loss in over 15 years while Idea likely to post its sixth consecutive quarterly loss.

The average revenue per user (ARPU) will continue to slip in the upcoming quarter, despite strong subscriber addition on account of migration of Aircel and Reliance Communications’ (RCOM) subscribers, Edelweiss said in a note.

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Reliance Jio’s phone plans and cutting its tariff plans by Rs 50 on the 1GB per day on data plans, and giving cash back offers on plans worth Rs 399 and up in the month of January hurt its incumbents.
Bharti is likely to post its first quarterly loss in over 15 years, while Idea is likely to post its sixth consecutive quarterly loss.
Bharti Infratel could also have a soft quarter due to reduced tenancies, with many small operators exiting. It could be a mixed quarter, with weakness in voice, but data services may grow.
With the telecom sector being the worst performing sector since the start of the year, the question is how much of the bad news is already in the price.
Jio has signalled cut throat competition will continue, with the company providing free prime services for its subscribers for another year, contrary to market expectations that it will start monetising its users.
 
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