The Economic Survey 2017 laid in the Parliament today said that the ARPU (average revenue per user) of the telecom industry has come down by 22% since Reliance Jio rolled out its services.
The Economic Survey is a flagship document of the Ministry of Finance of the Government of India that reviews the economic development of the country. This document is presented in the Parliament every year.
“After launching of services by the new entrant in September 2016, the average revenue per user (ARPU) for the industry on aggregate has come down by 22 percent vis-à-vis the long term (December 2009-June 2016) ARPU,” the Economic Survey stated.
The survey, however, did not exclusively name Reliance Jio as the new entrant.
This 22% decrease in ARPU gets aggravated if we check the same against the period since September or since Jio launched its services.
Its a whooping 32%, says the survey.
The survey, however, found many merits of the laucnh of Jio.
“The telecommunications sector has experienced its own version of the “renewables shock” in the form of a new entrant that has dramatically reduced prices for, and increased access to, data, thereby benefiting—at least in the short run— consumers,” the Economic Survey mentioned.
This is the second volume of the Economic Survey, the first volume was tabled in Parliament in February this year, before the annual budget.
Citing a Nasscom report the survey said, in 2016-17 India’s total revenue (exports plus domestic) of the IT-BPM sector including and excluding hardware is expected to touch US$154 billion and US $140 billion, with growths of 7.8 per cent and 8.1 per cent respectively. IT-BPM exports are expected to reach USD 117 billion, with a growth of 7.6 per cent.
Overall, the Economic Survey said the services sector remains the key driver of India’s economic growth, contributing almost 62 per cent of its gross value added growth in 2016-17. However, the growth of this sector has moderated to 7.7 per cent in 2016-17 compared to 9.7 per cent achieved in the previous year, though it continues to be higher than the other two sectors and nearly at the top among the 15 major economies.