Airtel Reports Lowest Quarterly Profit in 2017, Reliance Jio vs Airtel Price War Continues

Reliance Jio again has thrown Airtel off from its throne, no matter how many times Airtel comes up to revive itself in the suffocated Telecom Industry with its plan to woo consumers. This time the competition has reached another level wherein the Airtel reports its lowest profit generated in the year 2017 when it is calculated on a quarterly basis.

This has happened for the second time but after four years of being at No.1 position. It is quite difficult to make peace with the fact that now the monopoly enjoyed by Airtel has ended and is replaced by Reliance Jio which is taking the market and the entire telecom industry by storm since its launch that happened less than a year ago.

Reliance Jio vs Airtel – The War is ON!

Airtel which used to be the largest telecom sector in India has been taken aback since the launch of Reliance Jio. The free services offered by them and unbelievable lowest possible rates in terms of talk time plans and data plans has given a strong jolt to Airtel’s services as consumers took no time to shift from one company to another. The sudden shift and inability at the Airtel’s end to cater to the existing subscribers led them to lose their retained audience as well. As a consequence of this vicious circle, Airtel has now recorded lowest of all profits that it has ever made in the first quarter of the year 2017, which is indeed an alarming signal for the rest of the year.

What’s Up with Airtel in India? Highlights reveal:

Airtel is going through a “Phase” as one perceives and this what is happening in the telecom sector right now.

  • The largest telecom sector reports smallest quarterly profits, which is sad
  • The $23 billion merger of Idea and Vodafone gives a huge setback to Airtel
  •  Forecast analysis of Airtel for fiscal year lied at INR 528 crores
  • Net profits reached about 72% and targeted only INR 373 crores against set benchmark
  • Revenue per user of Airtel declined by about 8% from previous quarter profits
  • African subcontinent under Airtel rose by 2.6% while Indian Subcontinent lags behind
  • Declination besides taking over Norwegian Telenor’s operations in 6 Indian states
  • Tying up with Telenor and Tikona in business the only ray of hope for Airtel

Lowest Mark in the lifetime – Airtel suffers huge setback

Knowingly that free services and data packs offered by Reliance Jio wasn’t hoax but still due to lack of time period gap in its announcement and implementation gave Airtel no time to re-frame their policies to retain their existing consumers, what do we talk of acquiring more ! Even after slashing their rates manifold, customisation option availability in plans which supposedly even Jio has filed a case against, the revival Airtel in India seems a distant dream.

The company’s first smallest profit making data ranges back to the year 2012, wherein, revenues came slashing by a whopping 12% which shook the company’s budget and policies. The another setback which we all know of is due to Reliance Jio which is more than 2012 as Airtel witnesses revenue declination on an annual base period for full term for the first time ever, which is quite sad.

No idea, when the war is going to end. But, what we know of is, if it’s a war, no two parties win. And going by the statistics and data, we very well can predict who would be the winner of the Telecom War or the Price War. The warriors are giving a tough fight though, and in the war, somewhere deep down we all know, “None wins till the time one loses” !!!!

Source: NDTV

 

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Oberoi Aneesha

A visionary keen on writing her heart out and making content as true calling of her life; Meet Aneesha Oberoi, a Goal-oriented free spirited girl whose passion is to write and is an engineer by profession. You may reach her at hello@chandigarhmetro.com