Jio and Airtel, the leading telecom players in India, reported sequential growth in their Adjusted Gross Revenue (AGR) for the fourth quarter (Q4) of FY23, while Vi faced a decline in its AGR.
Positive Growth for Jio and Airtel:
Jio, the telecom giant, witnessed a 1.7% growth in AGR, reaching Rs 23,300 crore. Airtel, another major player in the industry, experienced a 1.3% growth in AGR, amounting to Rs 20,400 crore.
Factors Driving Growth:
The growth in Jio and Airtel’s AGR can be attributed to increased data usage and voice traffic. These telecom providers have been focusing on expanding their customer base and offering competitive data and voice plans, resulting in higher revenue.
Decline in Vi’s AGR:
Vi, however, faced a decline of 1.1% in its AGR, which amounted to Rs 9,300 crore. The decline highlights Vi’s ongoing financial stress and challenges in the fiercely competitive telecom market.
Importance of AGR Data:
AGR is a crucial metric for the telecom sector as it determines the revenue share that telecom operators need to pay to the government. The government has been advocating for a reduction in AGR, considering the current levels to be excessive.
Concerns for Vi:
Vi’s decline in AGR raises concerns about the company’s financial stability and its ability to sustain competition against Jio and Airtel. Vi has been struggling to retain market share and improve its financial position.
Government Intervention Expected:
To address Vi’s financial woes, the government is likely to take measures such as providing financial assistance or facilitating a potential merger with another telecom operator. These actions aim to stabilize the sector and ensure healthy competition among all players.
Telecom Sector’s State of Flux:
The AGR data for Q4 FY23 reflects the dynamic nature of the telecom sector. While Jio and Airtel continue to grow and strengthen their positions, Vi’s challenges persist. The government plays a pivotal role in maintaining a competitive environment and ensuring the sustainability of all telecom operators.
