According to the new report by Jefferies, the growth of Reliance Jio subscriber base and its free offering till the end of fourth quarter of 2016-17, has led to an 11.7 percent year-on-year decline (8.5 percent quarter-on-quarter decline) in industry revenues.
It says that Reliance Jio effect was also evident in the decline being maximum in metro and A circles where Reliance Jio has a higher penetration, and where the smartphone ecosystem is better developed
Meanwhile, Cellular Operators Association of India (COAI), Director-General, Rajan S Mathews on the financial health of the telecom industry recently told Gizbot that the telecom industry has lost about 20 to 30 percent of revenue due to Reliance Jio's free services.
Earlier, before Jio came into the game there were losses but year over year revenue was increasing. Rajan also pointed out that 2016- 17 was the first year in the history of telecom industry that total revenue of the industry has declined.
When asked about, whether Jio was the reason behind losses, Rajan replied free "offers by one company is the principal reason behind it."
To recall Reliance Jio has managed to add 3.87 million subscribers in the month of April, which is lower compared to March, which was at 5.83 million.