Home > Indian Industry News, Telecom > Indian Industry News: Bharti net profit hit by tariff war

Indian Industry News: Bharti net profit hit by tariff war

When the annual telecom subscriber figures for FY 2010 were released, I had mentioned in my article (Telecom subscribers are rising.. are revenues too??) that in spite of a rise in number of subscribers, revenues are expected to fall in the March 2010 quarter. This is because lower tariffs were expected to have resulted in a fall in average revenue per user (ARPU) as minutes of usage are not rising proportionately.

Financial performance of Bharti Telecom, the largest telecom operator in India, was in line with expectations.

Average revenue per user (ARPU) of the company dipped from Rs 305 in March 2009 to Rs 220 in March 2010 quarter. The company’s high margin non-voice revenue stream recorded a healthy growth. Again, like it was mentioned in my earlier article, falling share of voice- revenues to total revenues is one of the reasons why telecom companies are willing to spend large sums on 3G auctions.

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