Bharti Airtel repots decline in volumes in the third quarter

Bharti Airtel repots decline in volumes in the third quarterIndia’s leading mobile phone service provider, Bharti Airtel Ltd has surprisingly reported a fall in traffic carried on its mobile networks in the third quarter of the year.

The company announced last week that the total number of minutes carried on its mobile network fell 1.9% in the quarter. It also reported a 2 per cent decline in earnings before interest, tax, depreciation and amortization (Ebitda) in its mobile service unit.

Bharti said that the decline is manly due to seasonal trends. The growth has been lower earlier in the year and the telecom companies see a slowdown during monsoons. The shares of the telecom major did not take a hit and increased 2 per cent in the same period.

As the share prices re increasing it is believed that the investors accept the explanation given by the telecom firm. However, some point out that even as the seasonal trends may have affected the volumes, the increase in tariffs by the firm may also affect the use in the country. The average tariffs increased 1 per cent last quarter.

The telecom firms in the country are also concerned over regulatory challenges including the removal of roaming charges and a reduction in mobile termination rate.