Skip to main content

Jio Tarriff wrost hit in the market

Reliance Jio’s tariff hike suggests worst may be over for telcos


While the December quarter is expected to be the worst for telcos in years, it may end up being the nadir as far as profitability goes

Reliance Jio’s slow but steady tariff increases suggest things are likely to improve from hereon on the profitability front. Graphic by Subrata Jana/Mint

Reliance Jio Infocomm Ltd has hiked tariffs for its flagship scheme by about 15%, lower than the 26% and 36% increase on the previous two occasions. Not that incumbents will be complaining. They have been reeling under the triple whammy posed by Jio’s cut-throat competition, the impact of goods and services tax, or GST, and a 57% cut in interconnection usage charges (IUC).

In fact, when the Telecom Regulatory Authority of India, or Trai, had announced the cut in IUC last month, one worry among some investors was that Jio may use the resultant savings—Jio ran an IUC bill of more than Rs2,100 crore in the September quarter—to cut tariffs. In this backdrop, Jio’s tariff hike comes as a relief for incumbents, as it will help increase revenues and limit losses.
So while the December quarter is expected to be the worst for telcos in years, it may end up being the nadir as far as profitability goes.
Jio’s slow but steady tariff increases suggest things are likely to improve from hereon on the profitability front.

Of course, it’s another matter whether telcos—the ones that survive—will make a respectable return on their investment.

Comments

Popular posts from this blog

Bill Gates says coding is easy check out

Billgates In 1975, Gates and Allen launched Microsoft, which became the world's largest  PC  software company. During his career at Microsoft, Gates held the positions of  chairman ,  CEO and  chief software architect , while also being the largest individual  shareholder  until May 2014. Gates stepped down as chief executive officer of Microsoft in January 2000, but he remained as chairman and created the position of chief software architect for himself. In June 2006, Gates announced that he would be transitioning from full-time work at Microsoft to part-time work and full-time work at the  Bill & Melinda Gates Foundation . He gradually transferred his duties to  Ray Ozzie  and  Craig Mundie . He stepped down as chairman of Microsoft in February 2014 and assumed a new post as technology adviser to support the newly appointed CEO  Satya Nadella .

Golmaal Again

Golmaal Again box office collection day 10: Ajay Devgn film continues to remain a rage Golmaal Again box office collection day 10: Having earned Rs 153.94 crore until Sunday, Golmaal Again is the second-highest grossing film this year yet. The second week of the film is well underway, and this Ajay Devgn and Rohit Shetty starrer has not showed signs of slowing down Golmaal Again box office collection day 10: This Ajay Devgn film has earned Rs 153.94 crore. RELATED NEWS Golmaal Again box office collection Day 9: Ajay Devgn film collects Rs 153.94 crore Golmaal Again box office collection day 8: Ajay Devgn film earns Rs 143.33 crore Golmaal Again box office collection day 7: Ajay Devgn’s film earns Rs 136.07 crore Rohit Shetty directorial Golmaal Again has grabbed the second spot on this year’s top grossing films after Baahubali 2. It is difficult to believe as it is only the first week of the film, which is the fourth iteration in the Golmaal Franchise, th...

Kiran Bedi a courage need to be saluted

Kiran Bedi  Kiran Bedi  was born and bred in the holy city of Amritsar, Punjab. She is a social activist and the first woman IPS officer in the country. She has not only served her department with full conviction, but has also made whole-hearted contribution to many social causes. A former tennis player, the multi-talented social activist from Amritsar is credited for bringing down the number of crimes against women in West Delhi during her service. She introduced several reforms at Tihar Jail, which gained worldwide acclaim and won her the Ramon Magsaysay Award in 1994. In 2003, Kiran became the first Indian woman to be appointed as a Police Advisor to the Secretary-General of the United Nations in the Department of Peace Keeping Operations. She resigned in 2007 to focus on social activism and writing. She has written several books, and runs the India Vision Foundation. Kiran Bedi introduced a number of reforms in the management of Tihar Jail, Delhi when she was th...