NEW DELHI : Consumer spending on mobile services, including taxes, has surpassed levels seen before Reliance Jio’s entry, according to analysts at ICICI Securities. This is a big plus for Indian telecom service providers who have been reeling from tariff wars since 2016.
Consumer spending on mobile services after goods and services tax increased 4.2% sequentially to ₹42,000 crores in Q3FY22, up 8% year-on-year (yoy) thanks to 20-25% rate hikes by all carriers in the quarter, according to the brokerage’s May 8 memo to customers . “Finally, consumer spending on telecom services has surpassed pre-RJio levels (the previous peak was in Q1FY17),” said Sanjesh Jain, vice president, equity research, ICICI Securities, in a note seen by Mint. Net revenues, after deducting inter-company settlements, increased 4.4% quarter-on-quarter (quarter-on-quarter) and 11.9% year-on-year, to ₹39,200 crores.
Consumer spending on voice calls has fallen significantly, while spending on data has increased by nearly the same amount, according to the brokerage’s data analysis. This was manifested in outbound voice revenue, which fell 12% to ₹59.4 billion in the quarter compared to a year ago.