Data Boom Adds Spring to Telcos’ Topline

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The jump in demand for data-related services has begun reflecting in the gross adjusted revenue of telecom operators, latest quarterly data from the Telecom Regulatory Authority of India (Trai) showed.

Revenue of domestic operators grew at an annualised rate of 12% over the past two years, much faster than the 5-year compounded annual growth rate (CAGR) of 7%.

This may be reassuring for investors concerned about the burgeoning debt of sector players, who expanded services to offer 3G connectivity across telecom circles in the country.

Higher revenue growth will help companies lower their borrowings, thereby reducing interest outgo and improving profitability. Original post at ET Telecom

Wahengbam Rorrkychand

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