On december, 2016 after announcement of the extension of the welcome offer till march 31,2017 causes great loss to the India's leading 3 telecos company's such as Barathi Airtel, Vodafone india and idea have to face a large fall in their users and income, said by the experts.
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The country’s three largest telcos are staring at the prospect of a prolonged slide in data revenue growth, a minimum 15-20% fall in data tariffs and as much as a 200 basis points (bps) reduction in Ebitda margins over the next six to 12 months.
Nitin Soni, director at rating agency Fitch, said Jio’s decision to keep its free services offer running for nearly seven months is unprecedented, which is bound to continue the bruising impact on incumbents.
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In the world history it's first time a single telecos continuing a particular offer for 7 months, said by a senior executive yesterday.
Bharti Airtel declined comment, while Vodafone India, Idea Cellular did not reply to ET’s email queries at press time.Bharti Airtel’s former chief executive Sanjay Kapoor suggested that the real reason behind Jio’s free services extension move was perhaps to quickly build a sizeable customer base, and, in turn, ensure that it has a decent subscriber count even after dropouts happen once it switches to paid services, post March ‘17.
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