Indian mobile carriers losing ₹2.4 cr revenue every hour owing to internet shutdowns

  • Indians consume an average 9.8 gigabyte of data per month on their smartphones, the highest in the world
  • Internet shutdowns should not be first course of action, said the Cellular Operators Association of India

Reuters
Updated27 Dec 2019, 09:04 PM IST
To quell protests against citizenship law, government has intermittently ordered mobile data shutdowns (Photo: Reuters)
To quell protests against citizenship law, government has intermittently ordered mobile data shutdowns (Photo: Reuters)

New Delhi: Indian mobile operators are losing around 2.45 crore ($350,000) in revenue every hour they are forced to suspend internet services on government orders to control protests against a new citizenship law, a top lobby group said on Friday.

Countrywide protests have raged for three weeks after parliament passed legislation which gives minorities from neighbouring Pakistan, Afghanistan and Bangladesh a path to citizenship but excludes Muslims.

That, coupled with a plan for a national register of citizens, are seen by critics as anti-Muslim moves by the Hindu nationalist government of Prime Minister Narendra Modi.

To quell protests, government has deployed thousands of police as well intermittently ordered mobile data shutdowns at a time people have used social media such as Instagram and TikTok to wage a parallel battle online. Such internet suspensions have been criticised by internet freedom activists.

On Friday, mobile internet was ordered shut in at least 18 districts in northern Uttar Pradesh state, a telecoms industry source told Reuters.

A Reuters witness received a text message from an internet service provider announcing that home broadband services on the outskirts of capital New Delhi will be unavailable for 24 hours, till the morning of Dec 28.

Indians consume an average 9.8 gigabyte of data per month on their smartphones, the highest in the world, according to Swedish telecoms gearmaker Ericsson. The country is the biggest market by users for social media firm Facebook and its messenger WhatsApp.

Internet shutdowns should not be first course of action, said the Cellular Operators Association of India (COAI), which counts mobile carriers Bharti Airtel, Vodafone Idea and Reliance Industries' Jio Infocomm as its members.

"We've highlighted the cost of these shutdowns," COAI director general Rajan Mathews told Reuters. "According to our computation at the end of 2019, with the increase in online activities we believe the cost (of internet shutdowns) is close to 2.45 crore for an hour of internet shutdown."

The revenue losses will pile on to the woes of India's telecoms sector, bruised by a price war and saddled with a combined $13 billion in overdue payments following a Supreme Court ruling in October.

Bharti, Vodafone Idea and Reliance Jio did not respond to emails seeking comment.

The bans follows an unprecedented shutdown of internet and text messaging services in parts of Delhi last week, widening a communications clampdown in restive areas stretching from disputed Kashmir to the northeast.

Internet services in Indian Kashmir were suspended for over 140 days since New Delhi relegated its status to a federal administered territory from a state, making it the longest such shutdown in a democracy, according to digital rights group Access Now.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:27 Dec 2019, 09:04 PM IST
Business NewsIndustryTelecomIndian mobile carriers losing ₹2.4 cr revenue every hour owing to internet shutdowns

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    159.00
    03:59 PM | 9 OCT 2024
    -0.55 (-0.34%)

    Indian Oil Corporation share price

    164.75
    03:58 PM | 9 OCT 2024
    0.35 (0.21%)

    Zee Entertainment Enterprises share price

    128.90
    03:58 PM | 9 OCT 2024
    2.1 (1.66%)

    Ashok Leyland share price

    222.05
    03:59 PM | 9 OCT 2024
    -0.45 (-0.2%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Bank Of Maharashtra share price

    54.79
    03:56 PM | 9 OCT 2024
    -2.22 (-3.89%)

    Vodafone Idea share price

    9.19
    03:58 PM | 9 OCT 2024
    -0.31 (-3.26%)

    ITC share price

    491.80
    03:55 PM | 9 OCT 2024
    -16.1 (-3.17%)

    Tata Communications share price

    1,950.15
    03:52 PM | 9 OCT 2024
    -54.95 (-2.74%)
    More from Top Losers

    Gujarat Ambuja Exports share price

    142.45
    03:59 PM | 9 OCT 2024
    12 (9.2%)

    RITES share price

    324.60
    03:56 PM | 9 OCT 2024
    24 (7.98%)

    Divis Laboratories share price

    5,972.90
    03:29 PM | 9 OCT 2024
    425.9 (7.68%)

    Torrent Power share price

    1,935.20
    03:52 PM | 9 OCT 2024
    118.05 (6.5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,455.000.00
      Chennai
      77,461.000.00
      Delhi
      77,613.000.00
      Kolkata
      77,465.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.85/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Industry

        HomeMarketsloanPremiumMint Shorts