Troubled by dirt-cheap phone plans by new entrant Reliance Jio, the country’s largest telecom company Airtel has reported yet another fall in its quarterly net profits. This is the fourth consecutive time that Airtel has reported a dip in its profits. For the quarter ending September 30, Bharti Airtel’s consolidated profits have come down by a significant margin. The Q2 profit is Rs 343 crore, which is a major fall as compared to the year-ago period. Airtel’s MD and CEO, India & South Asia Gopal Vittal said that the primary reason for the fall in revenue is the financial stress in the telecom sector. He said that the revenues will be further impacted since IUC (inter-connection usage charges) has been significantly reduced by the government. However, Vittal assured that the company is working on new strategies to win customers through improved phone and data services.
Vittal also pointed out to the fact that data services are fast replacing the traditional phone services. This is also impacting revenues of established telecom companies that were heavily depended on phone services for revenue. Vittal said that Airtel will increase its focus on data services to get new customers. “Mobile market continues to experience value erosion and financial stress led by competitive pressures. Mobile data traffic has grown fourfold to 784 billion MBs in the quarter as compared to 178 billion MBs in the corresponding quarter last year,” a statement released by Airtel said.