Headwinds for telcos not over yet

Cut in interconnect usage charge and down trading would also lead to sharp fall in consolidated profit for Bharti Airtel in Q3

Despite the higher subscriber addition given the exit of smaller players, financial performance of existing telecom service providers is expected to remain under pressure in the near-term. This should also reflect in the December quarter (Q3) with analysts expecting a hit to their revenues and operating profit to the tune of 8-12 per cent. The stress on financials is expected to continue due to down-trading of monthly plans, both prepaid and post-paid, and reduction in interconnect usage charge (IUC). IUC is a charge paid by the call originating service provider to the terminating network for carriage of the call to