Reliance JioInfocomm is now India’s second-largest telcom company by revenue market share,
Jio, which started in September 2016 with a nationwide 4G network, reported an over 14% sequential jump in overall AGR (including national long distance revenue) to Rs 7,200 crore in the quarter ended June, while Airtel’s rose 0.9% on-quarter to Rs 10,200 crore, inclusive of 45 days revenue of Telenor India, a company it acquired in May.
According to a report by Economic Times, Jio’s RMS (Revenue Market Share) increased by 253 basis points on-quarter to 22.4-percent at the end of June, based on data released by the Telecom Regulatory Authority of India. At the same time, Vodafone India’s RMS went down 175 basis points to 19.3-percent, and Idea Cellular’s RMS plunged 106 basis points to 15.4-percent.
As per Economic Times report, Jio also reported a 14-percent surge in its Adjusted Gross Revenue (AGR) to Rs 7,200 crore in the quarter that ended in June, while Vodafone India and Idea Cellular reported slumps of 7.1-percent and 5.2-percent to Rs 6,000 crore and Rs 5,200 crore, respectively.
Reliance jio plan is lucrative. It targeted rural areas of India. The plan of jio forced their competitor to change their plan to beat Jio. Reliance Jio managed to achieve this by creating a tariff war in the telecom sector. While Jio is still winning the tariff war, incumbent telcos are trying to match the new entrant. The Indian telecom industry is currently going through a rough phase with the operators combinedly having a debt of more than Rs 7 lakh crore.
As mentioned, the merged entity of Idea Cellular and Vodafone India will start operations with an annual revenue of Rs 63,000 crore and more than 430 million subscribers. The proposed merger already received all the necessary approvals, but DoT is planning to raise Rs 4,700 crore demand for one-time spectrum charges (OTSC), for which the approval has been delayed a bit.