Reliance Communications Ltd. (RCom), on Monday, reported a 16.1 per cent decline in its fourth quarter profit.

The reason cited by the second largest phone operator in India was that the sector has suddenly seen an increase in competition and that has forced the company to lower its earnings.

As several new entrants enter into the Indian telecom market, which is the fastest growing in the world, all the major players have seen a decline in financials.

Bharti Airtel, Idea Cellular and now RCom, all have seen a substantial decrease in their average revenue per user.

While the biggest player, Bharti Airtel saw a 8.2 per cent decrease in quarterly profit ending at Rs. 20.55 billion, RCom saw the figures go down to Rs. 12.20 billion. Last year, for the same period the profit was at Rs. 14.54 billion.

This information was given by the telecom company of Anil Dhirubhai Ambani Group in a statement issued to the stock market.

Talking about the results, Chairman Anil Ambani said that he was sure that the company will manage to come out of this environment and again go back to the old days.