Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!
you are here: HomeNewsIndia

Telecom industry loses 82 lakh subscribers in April, pressure to continue: Report

The decline in subscriber base during April was preceded by a loss of 28 lakh connections in March, which saw the lockdown being imposed towards the end, India Ratings and Research said in note. The biggest losers were Bharti Airtel and Vodafone Idea, it said, adding sector leader Reliance Jio witnessed a growth in its base.

July 29, 2020 / 04:25 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Telecom industry has lost 82 lakh subscribers during the complete lockdown in April, and COVID-19 pandemic will continue to keep customer additions under pressure, according to a report.

The decline in subscriber base during April was preceded by a loss of 28 lakh connections in March, which saw the lockdown being imposed towards the end, India Ratings and Research said in note.

The biggest losers were Bharti Airtel and Vodafone Idea, it said, adding sector leader Reliance Jio witnessed a growth in its base.

"The industry-wide subscriber base declined month-on-month by 2.8 million and 8.2 million in March and April 2020, respectively. The decline was attributable to a reduction in the subscriber base of Vodafone Idea Limited (VIL) and Bharti Airtel Limited, which has more than offset the growth in the subscriber base of Reliance Jio Infocomm Limited.

"The impact is due to the lockdown imposed after the outbreak of COVID-19 towards end-March 2020 and continued for the full month of April 2020. The addition in the subscriber base would remain under pressure in the coming months due to COVID-19," it said.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
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.

How many types of vaccines are there?

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.

What does it take to develop a vaccine of this kind?

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.

View more
Show

The lockdown had a chilling effect on all the economic activities, leading to severe impact seen across sectors in the economy, where the GDP is set to contract by over 5 percent in FY21 according to analysts.

Many professionals, especially those in the service industry, have taken to work from home amid the lockdowns as movements were restricted due to the threat of infections, and are relying increasingly on telecom and internet connectivity.

However, the agency's report said broadband subscriber base declined by 11.1 million subscribers in April, the first month of decline in the last two years.

It attributed the dip in broadband subscribers also to the lockdown and added that their share of the overall base has declined marginally to 57 percent in April from the level of 58 percent in March.

From a revenue perspective, the agency said tariff carried out in December 2019 resulted in an 11 percent growth in industry-wide revenue to Rs 402 billion in the March quarter as compared to the preceding three month period.

The momentum in revenue growth needs to be monitored, as besides tariffs, it is susceptible to movements in subscriber base - which declined in March and April 2020, the report said.

Meanwhile, on the latest adjusted gross revenue ruling of the apex court, it said Vodafone Idea is likely to be the worst hit as Bharti Airtel has sufficient liquidity to pay up the remaining dues at a go as well.

Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”

Follow our full coverage of the coronavirus pandemic here.
PTI
first published: Jul 29, 2020 04:15 pm

stay updated

Get Daily News on your Browser
Sections