In Charts | Lockdown impact: Beleaguered telecom sector spurts to life

Due to lockdown restrictions in place, there has been a massive rise in OTT consumption, thus fuelling the demand for internet data.

April 16, 2020 / 06:19 PM IST

In order to contain the spread of the deadly coronavirus, Prime Minister Narendra Modi has been forced to extend the lockdown period till May 3.

The economy is bleeding due to the restrictions in place and it has affected every sector. However, the telecom sector, which has been under the cosh for the past few years, seems to have got a new lease of life during this period.

Also Read: Coronavirus pandemic | Telecom players ask govt to permit self-KYC of new customers

Equity research firm ICICI Securities believes consumer behaviour may have undergone changes due to the sudden change in lifestyles owing to the lockdown and there is a high probability of emergence of new long-term trends after things normalise.

Also Read | Telecom towers unaffected by lockdown, task force ensuring smooth functioning


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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

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There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

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Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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According to the research firm, the sector is likely to reap the benefits from rise in internet literacy, increased video calling activities, likely improvement in fixed broadband penetration, etc.

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In the charts below, it is evident that during lockdown, consumption of Voice over Internet Protocol (VOIP)  and social networking sites have witnessed a significant jump.


- Mobile payments have also witnessed a jumpmobilepayment1404

- Gaming and video of demand (VOD) apps have also benefitted

Gamin and VOD

- Within VOD, viewership of original shows and movies shot up


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Moneycontrol News
first published: Apr 14, 2020 06:23 pm

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