What is the hourly revenue loss for Indian mobile operators due to internet suspensions?

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Indian Mobile Operators Suffer Significant Hourly Revenue Loss from Internet Suspensions

Indian mobile operators are incurring substantial revenue losses, estimated at approximately 24.5 million rupees (RM1.41 billion) for every hour internet services are suspended on government directives. This financial strain exacerbates existing challenges within India's telecommunications sector, which is already grappling with intense price competition and substantial outstanding payments. The Cellular Operators Association of India (COAI), representing major carriers, has highlighted these economic impacts stemming from mandatory service disruptions.
Estimated Hourly Financial Impact

The Cellular Operators Association of India (COAI) has calculated the hourly cost of internet shutdowns to be around 24.5 million rupees. This figure, determined by the COAI's computations towards the end of 2019, reflects the increasing reliance on online activities and the corresponding revenue streams generated by mobile data services. These ordered suspensions, often implemented to control public protests against new legislation, directly impact the operators' bottom line.
Broader Industry Challenges

These revenue losses add a significant burden to an already stressed Indian telecoms market. The sector has been significantly affected by a prolonged price war among operators, leading to reduced profitability. Furthermore, a recent Supreme Court ruling in October mandated substantial overdue payments, placing immense financial pressure on companies like Bharti Airtel, Vodafone Idea, and Reliance Jio Infocomm.
Context of Internet Shutdowns

The instances of internet suspensions have become more frequent in response to widespread protests against a new citizenship law. These shutdowns, which have affected multiple districts, including areas in Uttar Pradesh and on the outskirts of New Delhi, are implemented to curb the spread of information and organisation related to the demonstrations. Critics, including internet freedom activists, have raised concerns about the impact of such measures on civil liberties and communication.

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What is the hourly revenue loss for Indian mobile operators due to internet suspensions?

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