Fourth-quarter earnings at many of India’s largest mobile operators are likely to show signs of suffering from the fierce price war in the country, according to analysts polled by Reuters. The country’s largest mobile operator – Bharti Airtel – is expected to announce flat quarterly profit growth on Friday. However, rival operator Reliance Communications (R-Com) is expected to be the worst-hit by the price competition; analysts say that R-Com – which has been more aggressive than the likes of Bharti in cutting call prices – could report a 50 percent decline in quarterly profit for Q409. Another Indian operator – IDEA Cellular – also reports this week. “I don’t think there is room for the situation to worsen, but the pressure on earnings may continue for the next one or two quarters until some consolidation happens,” Globe Capital’s K.K. Mital, told Reuters.

India remains the fastest-growing mobile market in the world, adding over 15 million new users a month. However, while minutes of use per month is among the highest in the world, the effective price per minute has slipped below US$0.01, a consequence of the fierce price war. Bharti recently announced its expansion into Bangladesh is part of its strategy to break out of its crowded home market into new emerging territories. In India, Bharti is adding over 8 million new connections per quarter and yet its market leadership is under pressure from a raft of new market entrants, such as Telenor’s Uninor.