Lockdown Effect: Mobile revenues decline in metros

By: |
September 20, 2020 6:30 AM

In fact, Vodafone Idea reported an AGR of just Rs 34.95 crore from Delhi during April-June period compared to Rs 322.85 crore in the preceding quarter, leading to a meagre revenue market share of around 3%.

The regulator, however, asserted that there is "no need" for direct intervention on price regulation of such services.

Reverse migration during lockdown saw metro cities like Delhi, Mumbai and Kolkata register huge decline in mobile subscriber addition as well as revenues, while telecom circles like Bihar, UP and Kerala witnessed growth during the April-June period. Only Reliance Jio managed to add customers as well as increase its revenues in the three metros, while Bharti Airtel and Vodafone Idea lost out on both fronts.

As per Telecom Regulatory Authority of India data, the adjusted gross revenue (AGR ) of Vodafone Idea from the three metro cities declined to Rs 445.74 crore during April-June period compared to Rs 955.31 crore in the January-March quarter.

Similarly, Bharti Airtel’s AGR from these metros declined to Rs 931 crore from Rs 1,111 crore in the preceding quarter. However, Reliance Jio managed to increase its AGR to Rs 1,313.42 crore from Rs 1,226.49 crore in the previous quarter from the metro cities.

In fact, Vodafone Idea reported an AGR of just Rs 34.95 crore from Delhi during April-June period compared to Rs 322.85 crore in the preceding quarter, leading to a meagre revenue market share of around 3%.

However, both Vodafone Idea and Bharti Airtel managed to increase their AGR in UP (East), UP (West) and Bihar circles. For instance, Airtel’s AGR from these three circles increased to Rs 1,924 crore in April-June period against Rs 1,649 crore in the January-March period, while that of Vodafone Idea increased to Rs 842.07 crore from Rs 819.93 crore.

When it comes to subscriber additions, Trai data shows that in April only UP (East) circle saw net additions and in May, Bihar and Kerala circles witnessed net additions.

In terms of active subscribers, Reliance Jio has for the first time become the top operator with a 32.5% market share followed by Airtel with 32% share. In the preceding quarter, Airtel was marginally ahead with 32.1% market share as against 32% of Reliance Jio. In terms of total mobile subscribers, Jio has a market share of 34.3% followed by Airtel at 27.8% and Vodafone Idea at 27.1%.

Overall, the mobile operators lost 5.6 million gross subscribers in May, which is a third month of consecutive decline due to the pandemic. The industry, though, saw recovery in terms of active subscriber base. The active subscriber base saw 2.9 million net additions to take the base to 960.8 million.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Tobacco taboo has failed to unlock ITC’s value for years; now farm reforms could help rectify errors
2Freebies, discounts, payment plans driving homebuyer interest: Kolte Developer CEO
3Driving Demand: Keeping it festive, small-town India is a big shopper online