In a hyper-competitive market such as India, where up to 12 operators are vying for a share of the pie, Bharti Airtel has managed to increase its revenues. However, its profits declined in the first quarter. Sanjay Kapoor, CEO (India and South Asia), discusses the company's performance with HT.
Why is your net income down by 32%?
This is mainly due to adverse impact of the strengthening of the US Dollar against the Indian Rupee and several African currencies. During this period, derivatives and exchange fluctuations led to a loss of Rs 216 crore against a previous year's gain of Rs 279 crore, and net income dropped by 32.0 per cent.
Are incumbent operators still hit by hyper-competition?
If you notice, traffic has now started increasing on our network. During this quarter, total minutes on network were 206.2 billion, up by 24.2 billion over the previous quarter. This is a clear indication that traffic is returning to incumbent operators.
What is the status of fixed-line services?
About 8 per cent of our revenue comes from fixedline services. About 42.6 per cent of our fixedline customers use DSL. Nearly 95 per cent of new customers take DSL. Our revenue from fixedline services is Rs 981. Fixedline services are doing very well.