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
THERE IS ALREADY A FILM CALLED "THE MESSAGE" DO YOU HAVE PATIENCE TO WATCH?
THERE IS ALREADY A FILM CALLED THE MESSAGE
Let this jungli ignorant ask his PAKODA Janata Party (PJP) LEADER who financed the film Padmavat.
Prophet Muhammed is the last and final messenger of ALLAH, Who conveyed the message of Oneness of GOD almighty who is worthy of Worship....God sent many prophets including Abraham, moses, jesus and many others to convey this message prior to the last prophet of Mankind... Prophet Muhammad pbuh is not just for muslims but he came to convey to the whole of Mankind. Many people in arabia were worshipping manmade gods like idols, statues, images and animals instead of TRUE ONE GOD (which is NA TASYA PRATIMA ASTI).
Quran is the book revealed to Prophet Muhammad pbuh which is unchanged since its revelation... I request non muslims to Open up the QURAN ( U can also try quranproject online) to understand WHO GOD is? If U are honest in looking for the CREATOR of all that exist ... U will surely find him . Then
It is very EASY to find out how such criminal evil minded politicians are PLAYING in your minds... to keep away from the REAL issues of the SOCIETY>>>
A film already exists. The Message. Plz watch it.
Oye Minister Ji, Y Prophet Mohammed is coming into this picture. Dont dare to create communal voilence by shitting thru your mouth. Tomorrow you will say about "Jesus" too. Blast the guy who made padmavati, dont create communal tension by commenting non-related matter here. Indian public wasting money on films, if public stops watching no film will make money & every star will be like a common man. We as people should understand. Better dont watch any movie, let all starts come to common level.
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