Lockdown is a blessing for telecom companies: Mobile is the only means of communication

Mumbai, Ta. 11 April 2020, Saturday

Due to the coronavirus, most of the employees in the country are forced to adopt work from home, and the country is seeing a huge benefit. In addition, due to the fact that every small and large citizens are turning to indoors, data usage has also increased.

These factors are becoming positive for telecom companies, and their revenue for the March quarter is estimated to increase by about 5%.

The average revenue per user for telecom companies in the December quarter was Rs 5, up from Rs 1 to 3 in the March quarter, according to the Cellular Operators Association of India, according to data received from their members.

Since the lockdown was implemented in March, telecom traffic has increased by 3 to 5 percent.

However, the addition of new customers in March stood at 5 lakhs, while the average for each month is around 1 lakh. The lockdown slowed the pace of the addition of net subscribers, association sources said.

After the spread of Covid-1, telecom companies would not have given their customers as much as Rs 5 crore in various plans, the revenue through data usage of companies would have been even higher.

Telecom companies are expecting revenue growth of 5-7% at the end of the current fiscal year. Data usage is constantly on the rise. Apart from office work, schools and colleges are also launching online classes due to which data usage is increasing.

Despite the turbulent recession, there is no possibility of a reduction in the number of users as in the present case, mobile phones have been the only means of communication.