Reliance Jio sets highest market share
GUWAHATI: The Reliance Jio’s revenue market share stands at 30%– which is the highest in the industry. While the growth was led by Reliance Jio at 14% increase, its major rivals, however, have reported a relative fall.
The success behind this is, unlike its peers, Reliance Jio hardly assigns any value to national long-distance revenues as it is a data-driven network.
With this sharp rise, the tariff war triggered by Reliance Jio Infocomm Ltd hurt the Vodafone India Ltd and Idea Cellular Ltd combine the most.
Notably, the Mukesh Ambani-controlled India’s nascent telecom operator has gained nearly 7% points of revenue market share from Vodafone-Idea Cellular since it started reporting its financials in the quarter ended June 2017, according to data compiled by Bloomberg Quinn. Moreover, the Reliance Jio gained two percentage points from Bharti Airtel Ltd during the period while it gained another 14% points at the expense of smaller operators – BSNL, MTNL, Aircel Ltd., Reliance Communications Ltd., Telenor India and Tata Teleservices.
It is pertinent to mention here that the revenue market share is calculated based on the adjusted gross revenue—factoring in interconnect usage charges and other deductions—provided by the Telecom Regulatory Authority of India.
Telenor Communications Pvt. Ltd. and Tata Teleservices shut operations after selling assets to Bharti Airtel, while Reliance Communications continues as a virtual network after selling its assets to Reliance Jio.
The telecom sector’s adjusted gross revenue rose the first time in three quarters during April-June.
Notably, Reliance Jio, which started operations in 2016 with a nationwide 4G network, reported an over 18% sequential jump in adjusted gross revenue to Rs 6,300 crore the quarter ended March, while Airtel, Vodafone India, and Idea suffered sequential falls of 5.5%, 4.8% and 8.8% on this score to Rs 10,100 crore, Rs 6,700 crore and Rs 5,200 crore, respectively, ICICI Securities said in a note analysing the data collated by Trai.