Riding on tonnes of freebies since its launch in September last year,
Reliance Jio has gained a significant amount of user base. And now
Mukesh Ambani backed telecom firm plans to capture 50% of the market in India by 2020. However,
Jio hasn’t mentioned about the timeframe for this.
Last quarter,
Bharti Airtel, still the number one player in the sector has achieved a market share of 33.1% followed by
Vodafone India with 23.5%, according to brokerage
HSBC.
Tata Teleservices (TTSL),
Aircel and
Reliance Communications ended with 6.2%, 5.5% and 4%, respectively.
Deutsche Bank Equity Research Asia, which attended the first analyst meeting held by Jio, said the telco expects India's mobile market will expand by 50% over five years to $45 billion (Rs 3 lakh crore) versus $29 billion (Rs 1.94 lakh crore) currently, as per a news report by The
Economic Times.
In its presentation to analysts, Jio said, industry revenue growth is likely to drive government revenue by 50%.
Jio’s targets have been interpreted by analysts as aggressive. Bank of America’s
Merrill Lynch told the ET, "We note that not many telcos in the world are consistently able to increase average revenue per user (ARPU), a key thing which we think Jio is banking on to help it generate strong revenue/EBITDA.”
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