New Delhi, Jan 31: Substantial competition and low tariff rates by telecom operators since 2016 have led to a financial stress in the sector, the Economic Survey said on Friday.
The data price in the country came down by over 99 per cent during 2016-2019, making it among the lowest tariff in the world, according to the survey.
"Since 2016, the sector has witnessed substantial competition and price cutting by the telecom service providers (TSPs), creating financial stress in the sector. As a result, the sector is experiencing consolidation. While some operators have filed for bankruptcy, others have merged, in their quest to improve viability," the survey report said.
In April-June 2019, the price of data was Rs 7.7 per gigabyte (GB) as compared to Rs 200 per GB in June 2016, it added.
"The Average Revenue Per User (ARPU) for GSM based mobile services has also gone down substantially from Rs 126 in June 2016 to Rs 74.30 in June 2019," the survey said.
The tariff war started in the market with entry of new telecom operator Reliance Jio in September 2016.
"BSNL and MTNL are also affected by the tariff war that has impacted their cash flow resulting in mounting losses," the survey said.
The financial health of the public sector telecom firms plummeted to a level where they have been finding hard to pay employees salaries in time.
The government has drawn up a plan to revive these PSUs which is still in works.
The revival plan consists of several measures, including reduction of staff cost through voluntary retirement scheme, allotment of spectrum for 4G services, monetisation of land and building, tower and fibre assets of BSNL and MTNL, debt restructuring through sovereign guarantee bonds and ''in-principle'' approval for merger of BSNL and MTNL.
The survey said that the wireless telephony now constitutes 98.27 per cent of all subscriptions whereas share of landline telephones now stands at only 1.73 per cent where market share is dominated by private sector players.
"The overall tele-density in India stands at 90.45 per cent, the rural tele-density being 57.35 per cent and urban teledensity being 160.71 per cent at the end of September 2019. The private sector dominates with a share of 88.81 per cent (106.06 crore connections) at the end of September, 2019 while the share of public sector was 11.19 per cent (13.36 crore connections)," the survey said.
The lower price of data has also lead in surge of broadband connections and average consumption of the internet.
Total broadband connections increased by about ten times, from 6.1 crore in 2014 to 59.46 crore in June 2019, the survey said.
The number of internet subscribers (both broadband and narrowband put together) stood at 66.53 crore at the end of June 2019 as compared to 25.16 crore in 2014.
The number of mobile internet subscribers was 64.36 lakh at the end of June 2019 while the number of wireline internet subscribers was 2.17 crore.
"India is now the global leader in monthly data consumption, with average consumption per subscriber per month increasing 157 times from 62 MB in 2014 to 9.8 GB in June 2019. The cost of data has also reduced substantially, enabling affordable internet access for millions of citizens," the survey said.
Comments
First teach your own men to stop intolerance.
Are you people blind not seeing surge in oppression of poor.
You don't want people to raise their concern when you do all harms to poor and minorities.
Teach patriotism and tolerance to your own men.
Teach them to Denounce Godse who killed the father of Nation who gave you an identity to call you as proud Indian.
Muslims do not need any extra teaching from others.
They have full guidance from their God
Now if you are a true concerned of your nation, then at least learn what is teaching of Islam, just adapt in your routine life.
RSS should come forward to punish the killer of mahatma gandhi. They should ban Nathuram Godse's supporters.
RSS founder and its founding members already proved their patriotism during the time of India's freedom struggle!! We Muslims in India proved our patriotism from Shaheed Tippu Sultan\s time till now, we no need any advice from RSS. A Muslim is not a complete Muslim unless he is not patriotic to his country where he/she live, this is our Prophet's word."
Dear Mr. Indresh Kumar,
Please make sure that loving one's country and its people is a good traits of the Muslims as our beloved Prophet Muhammed (peace be upon him) has said: \Love of your country (patriotism) is a part of your faith.
Never be under the opinion that Madarasas are not teaching patriotism. We love our country as you love.
Patriotism is love of one's country, loyalty and devotion to it, desire to grow and prosper collectively or as a community, and you need to understand that we muslims are being dignified citizens of India proud to say that many of our patriotic ancestors have sacrificed their blood and life during the freedom struggles of our great nation. Please make sure that Islam does not forbid a Muslim to love his homeland or the country in which he lives or grows up.
Almighty Allah says: \"O Mankind! we have created you from a male and a female, and made you into nations and tribes, that you may know one another. Verily the most honorable of you with Allah is that (believer) who has Taqwa, Muttaqoon (pious)\". Verily Allah is all knowing all aware (Quran Chapter Hujuraat, verse No. 13).
May God help all of us to live in peace in this great Nation, INDIA."
RSS should learn what is PATRIOT not the muslims or madrasa childrens.
RSS - Stop making communal voilences,bomb explosions and divie an disturbences in the society.
Preach the patriotism to thier affialitaions like VHP, Bajrangees and Goodaisms groups.
ont question Muslims patriotism.
Yes thats why you are alive.....................
we know how to LOVE our country ,Quran teaches us very nicely , we are all patriotic Indian muslims, our country is our home
Muslims love India more than you do......unlike Nathuram Godse who killed Gandhiji....
Killer of Mahatma Gandhi speaking of Patriot..
No Need Advice from RSS For Muslim
Love your country is part of islam .....
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