The telecom sector saw significant consolidation within the industry with numerous exits from the industry in FY18. Competition from Reliance Jio resulted in significant erosion in Average Revenue Per User (ARPU) among operators in the industry. ARPU for Bharti Airtel stood at Rs123 in Q3FY18 (down 15.2% qoq), while ARPU for Idea Cellular stood at Rs114 (down 13.6% qoq). Meanwhile, ARPU for Reliance Jio stood at Rs156 (down 1% qoq).
The decision by the TRAI to significantly reduce the Interconnection Usage Charge (IUC) also caused significant reduction in revenues in the industry. The management of Idea Cellular estimates that the reduction in IUC impacted its revenues and EBITDA for Q3FY18 by Rs820cr and Rs230cr respectively.
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The decision by the TRAI to significantly reduce the Interconnection Usage Charge (IUC) also caused significant reduction in revenues in the industry. The management of Idea Cellular estimates that the reduction in IUC impacted its revenues and EBITDA for Q3FY18 by Rs820cr and Rs230cr respectively.
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