The Indian telecom sector has undergone a lot of changes in the recent times, especially ever since Reliance Jio entered the market. The operator kicked off a tariff war offering almost 6 months of free and cheap services.
Reacting to this tariff war, Airtel came up with its own subsidized as well as free mobile data to retain its customers from switching to the free services of Jio. Despite these efforts from Airtel, several reports state that Jio is the primary data connection of many subscribers in India. It is obvious that as far as Jio offers such cheap tariff plans, it will be used by a majority of the subscribers in the country, even if they retain their primary number from any other operator.
While this tariff war is getting more intense with every passing day, it appears like the social networking giant Facebook as been successful due to this. The telecom operators offer cheap or free data to their subscribers in order to retain them, which has contributed to the success of Facebook, which is at the receiving end.
Mark Zuckerberg, the founder and CEO of the social networking firm stated that in Q4 last year, Facebook witnessed an increase in the third-party free promotional data plans in India. Eventually, India has become te strongest growth market for the firm.
Facebook had reported that it has achieved a user base of 142 million in India until March 2016, and 133 million of these users are accessing the social network via mobile devices. While Facebook has reaped the benefits due to the increased free data usage, the telecom sector in the country is in a turmoil. Bharti Airtel reported a drop of 5.3% in revenues and 9.5% in profits.