Data | Telecom sector on the mend, AGR decision a relief

Vodafone-Idea and Airtel have recovered significantly in recent quarters from the record losses of Rs.510 billion and Rs.230 billion, respectively, in Q2FY2020

The redefinition of the adjusted gross revenue to exclude non-telecom revenue and a four-year to the struggling telecom giants. With Vodafone-Idea and Airtel dragging themselves back from record losses registered in 2019, the fears of a duopoly or monopoly emerging in the sector have been temporarily delayed. And with Jio increasing tariffs lately, the average revenue earned per user is also up, giving a much-needed fillip to the sector.

From 14 players in 2009-10, the telecom sector shrunk to just four in 2020-21. Jio’s quick rise and Airtel’s stagnant growth meant that the fears of oligopoly were fast becoming true. However, Airtel's profits in the last two quarters and Vodafone-Idea’s reduced losses hint at recovery.

Vodafone-Idea and Airtel have recovered significantly in recent quarters from the record losses of ₹510 billion and ₹230 billion, respectively, in Q2FY2020.