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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
The effect of COVID-19 was seen in every sector of the economy. One of the already struggling sectors, the telecom sector saw many losses and hardships during the lockdown period. Reliance Jio was the only telecom company which saw profits during the time because of all the investments which came in. One of the many side-effects witnessed was low migration rate and new user addition to the 4G. In the first quarter of 2020, an all-time low user addition and migration rate to 4G was recorded. Even though it is a bad result for the sector, it is not surprising and the sector is going to recover very soon.
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Lowest Migration Rate to 4G Recorded
There are many reasons behind this unfortunate record. One of them was the lockdown and the shutting down of retail stores. A large number of customers go to purchase their SIM cards from local retail stores and since they were shut, there was no way people could port to 4G SIM cards.
According to a report from ET Telecom, the 4G user base grew by a very small 1.7% in the first quarter of 2020 against 5.3% in the quarter before that. However, the analysts are quite sure about the fact that the telecom industry will recover very soon since it was just temporary retail shut down in the country.
As for the current quarter, the number is expected to rise to 4% and when the festive season arrives the numbers might further rise to 5% since sales for smartphones increase during that time. Along with that, now the telecom companies are delivering the SIM cards to the homes of their customers. This will further add to the convenience of the customers and they will be more motivated to port to a 4G network or SIM card.
