Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li> VIL lost market share in 14 circles whereas JIO gained market share in these circles. </li><li> Jio’s revenue market share is at 31.7% which is in striking distance of <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> <keyword id="41511" type="CITY" weightage="20" keywordseo="idea">Idea</keyword>’s 32.2%. </li><li>CARE recently downgraded VIL’s long-term debt to A- from AA-, with a negative outlook. </li></ul>What does it mean to be the top telecom service provider in India? The finish line in the race between Jio, Vodafone Idea (VIL), and Airtel is at the halfway mark. Mukesh Ambani’s Reliance Jio is looking to attain a 50% share in the total telecom sector’s revenue. The company that brought in predatory pricing is looking to bite off half of the telecom pie, which will probably make it powerful enough to alter the pricing structure of the market. Whether they will be able to do it or not will be determined in the next four to five quarters, which is when Emkay Brokerage predicts it will achieve it. Jio’s revenue market share without including national long distance is at 39.8%. Vodafone Idea has a share of 28.9% and Bharti Airtel is at 24% for the fourth quarter. However, when including national long distance, Vodafone is the market leader with Jio close behind. Vodafone is ceding the most of its territory to Jio. “VIL lost market share in 14 circles which contribute 50% of its total AGR (adjusted gross revenue), whereas JIO gained market share in these circles,” said a recent report on telecom sector by Emkay Brokers. What’s more worrisome is that Vodafone Idea is losing share in its traditionally strong circles of Mumbai, Tamil Nadu, Uttar Pradesh-East and Andhra Pradesh. These four leadership circles contribute to 28% of the merged company’s revenues. In the meanwhile, Jio found a niche in B and C circles, like Madhya Pradesh, West Bengal and Bihar amongst others. Not only does it command number one position in the circles, they contribute to more than half of Jio’s revenue. Yet, Jio is not gaining ground as fast as it did, earlier. “The intensity of RMS gains has decelerated due to slower revenue growth,” Emkay said. A Negative Outlook It is this manner of extreme competition which has worried rating agencies too. CARE recently downgraded its long-term debt to A- from AA-, with a negative outlook. “The negative outlook continues to factor the moderation of operational performance amidst intense prevalent competition in Indian telecom Industry. The competition in the industry has intensified leading to decline in realizations,” CARE said in its report. Improving Margins Vodafone Idea however is setting the stage for improving its margin even in an era where prices for 3G data fell drastically since Reliance Jio’s entry. It introduced a minimum recharge plan of Rs 35 for 28 days, and it lost 53 million subscribers in the fourth quarter. The customers which it lost were those who were using the number for incoming calls only or barely using it. As a result, its average revenue per user (ARPU) went up to ₹104 from ₹89 a quarter earlier. In spite of small victories, Vodafone Idea is a long way from withstanding the onslaught of Reliance Jio’s aggressive tariffs. And Vodafone’s fate will also depend on when, how it will win the price war. “The outlook may be revised to Stable in case it is able to withstand the competition in a more resilient manner and demonstrate improvement in operational and financial performance indicators,” CARE said.

The magic number that Vodafone Idea, Airtel and Jio are chasing is 50

Riding on tonnes of freebies since its launch in September last year, <a href="http://www.businessinsider.in/searchresult.cms?query=jio&amp;sortorder=effectivedate">Reliance Jio</a> has gained a significant amount of user base. And now <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> backed telecom firm plans to capture 50% of the market in India by 2020. However, <keyword id="2003276" type="UNKNOWN" weightage="20" keywordseo="Jio">Jio</keyword> hasn’t mentioned about the timeframe for this. 
 
Last quarter, <a href="http://www.businessinsider.in/searchresult.cms?query=jio&amp;sortorder=effectivedate">Bharti Airtel</a>, still the number one player in the sector has achieved a market share of 33.1% followed by <keyword id="6354923" type="COMPANY" weightage="20" keywordseo="Vodafone-India">Vodafone India</keyword> with 23.5%, according to brokerage <keyword id="6358584" type="CITY" weightage="20" keywordseo="HSBC">HSBC</keyword>. <a href="http://www.businessinsider.in/searchresult.cms?query=jio&amp;sortorder=effectivedate">Tata Teleservices</a> (TTSL), <keyword id="6360249" type="COMPANY" weightage="20" keywordseo="Aircel">Aircel</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=jio&amp;sortorder=effectivedate">Reliance Communications </a>ended with 6.2%, 5.5% and 4%, respectively. 
 <keyword id="4250127" type="UNKNOWN" weightage="20" keywordseo="deutsche-bank-equity-research-asia">Deutsche Bank Equity Research Asia</keyword>, 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 <keyword id="6474066" type="COMPANY" weightage="20" keywordseo="economic-times">Economic Times</keyword>. 
 
In its presentation to analysts, Jio said, industry revenue growth is likely to drive government revenue by 50%. <a href="http://www.businessinsider.in/searchresult.cms?query=jio&amp;sortorder=effectivedate">Jio’s targets have been interpreted </a>by analysts as aggressive. Bank of America’s <keyword id="6374847" type="CITY" weightage="20" keywordseo="Merrill-Lynch">Merrill Lynch</keyword> 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.” 
 
(Image <a href="http://trak.in/wp-content/uploads/2016/09/Reliance-Jio-SIM-Cards.jpg">Source</a>)

Here’s how Reliance Jio aims to gain 50% market share by
2020

<a href="http://www.businessinsider.in/searchresult.cms?query=reliance+jio&amp;sortorder=effectivedate">Reliance Jio</a> will roll out its <a href="http://www.businessinsider.in/searchresult.cms?query=prime+membership&amp;sortorder=effectivedate">Prime membership</a> from next month and if it becomes a hit among consumers, it will have adverse impact on <a href="http://www.businessinsider.in/searchresult.cms?query=airtel&amp;sortorder=effectivedate"> Airtel</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=vodafone&amp;sortorder=effectivedate">Vodafone</a> and<a href="http://www.businessinsider.in/searchresult.cms?query=idea&amp;sortorder=effectivedate"> Idea</a>. 
 
Jio’s Rs 303 per month membership can affect 16-17% fall in telecom industry revenues in FY18, if it finds maximum traction. 
 
Brokerage Kotak Institutional Equities told ET that it would be "foolhardy for incumbents to assume they can command material pricing premium in the marketplace versus Jio". 
 
Kotak estimates "a potential ceteris paribus negative impact of around 16-17 per cent on industry revenue in FY2018" if Jio's Rs.303/month offer appeals to customers with total monthly wireless spends of Rs. 200 or more. But it noted that the estimated dip in industry revenue could be restricted to 8-10 per cent if there is "ARPU sanity in the sub-Rs.200 segment of the market". 
 On the flip side, brokerage Credit Suisse, however, feels market leader Bharti <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> will match Jio's paid offers, going forward. 
 
"While it didn't make sense to match Jio's free offer, we believe Bharti has decided that it will not hesitate from matching Jio's paid offers," the Swiss brokerage said. 
 
"Some of the largest corporate customers of incumbents have not seen rates go down or data allowance go up since Jio's launch, even as customers intending to port out and new users have seen a significant improvement in the price-value equation," analysts at Kotak said in a note seen by ET.

Reliance Jio’s ‘Prime’ membership begins next month.
Here’s how it is impact Airtel, Vodafone and Idea

<keyword id="6354504" type="UNKNOWN" weightage="100" keywordseo="Reliance-Jio">Reliance Jio</keyword>, the latest entrant in <keyword id="169072" type="UNKNOWN" weightage="20" keywordseo="Indian-telecom-market">Indian telecom market</keyword> owned by <a href="http://www.businessinsider.in/mukesh-ambani-knows-what-the-millennials-want-heres-how/articleshow/57390611.cms">Mukesh Ambani</a>, expects to gain over 50% revenue market share with operating margins of over 50%, thanks to huge expected data demand and growth. 
 As per sources, it would only take <keyword id="2003276" type="UNKNOWN" weightage="20" keywordseo="Jio">Jio</keyword> 3 to 4 years to do this, however nothing has been officiated by Jio. 
 
Also read: <a href="http://www.businessinsider.in/airtel-vodafone-and-idea-are-facing-the-heat-from-jio-as-they-may-lose-upper-end-customers/articleshow/57287150.cms">Airtel, Vodafone and Idea are facing the heat from Jio as they may lose upper-end customers</a> 
 
As of December 31st, market leader <a href="http://www.businessinsider.in/reliance-jio-is-forcing-telecom-players-to-tweak-their-plans-airtel-may-drop-roaming-charges/articleshow/57371097.cms">Bharti Airtel</a> had a share of 33.1%, with rivals <a href="http://www.businessinsider.in/vodafone-india-steps-up-its-game-gives-4g-expansion-contract-worth-rs-3650-crore-to-nokia/articleshow/56804433.cms">Vodafone India</a> and Idea Cellular owning 23.5% and 18.7% share, respectively. They were followed by TTSL, Aircel and RCom with 6.2%, 5.5% and 4% market shares, says brokerage HSBC, after analysing TRAI data. 
 
Also read: <a href="http://www.businessinsider.in/jios-back-breaking-new-data-plans-are-giving-rivals-sleepless-nights/articleshow/57432021.cms">Jio’s back-breaking new data plans are giving rivals sleepless nights</a> 
 
Ever since Jio was launched, the Indian telecom industry is going through a price battle, in which data is going to play a huge role. The analyst presentation by Jio said that the company’s overall data revenue market will touch Rs 3 lakh crore in the next three-four years, because of users moving from voice to data. The move would be worth Rs one lakh crore, taking data to Rs 1.3 lakh crore in the same period. 
 
This revenue growth in the industry would up government revenues by 50%, which is ironical since it was only last month Jio’s promotional offers cost the government Rs 685 crores. 
 
Leading global consultants have predicted that users in India would demand data at 500-600 crore GB per month, which when calculated at the rate of Rs 50 per GB, translates to Rs 3.0 - 3.6 lakh crore per year. This is almost 1.35 to 1.6% of the projected GDP of the country. While this may seem a lot, it still lags behind the usual 2.5% in developed economies. 
 
As per the presentation, around 400 million Indian subscribers can now afford to spend Rs 500 and above on digital services. In 2009, this average revenue per user (ARPU) was Rs 179. 
 
The presentation also added that while the firm is capable to launch 5G services as well, it is for the time being offering only 4G services. 
 
(Image source: VoiceNData)

Roaring data demand leads Reliance Jio to expect over 50% of revenue market

<ul><li><keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>’s growth in subscribers has slowed down this quarter.</li><li>It only added 29 million users in Q2 FY20 in comparison to adding 37 million during the same quarter last year.</li><li>Jio’s ARPU also hit ₹120, dropping for the seventh consecutive quarter. </li></ul>Reliance Industries released its earnings for the current quarter and its digital business, Reliance Jio, seems to be slowing down. Jio’s subscriber base only added 29 million in Q2 FY20. In comparison, Jio added 37 subscribers in the same quarter last year. However, the company is making more money out of its subscribers — the margin for Jio improved by as much as 170 basis points to over 11%. This would be heartening for the investors in RIL. And, even though growth is slowing down, the number subscribers has still grown 7.2% over the last quarter. A report published earlier today by the Telecom Regulatory Authority of India (TRAI) found that Jio was the only telecom operator to add subscribers during the month of August. "It's also a matter of great pride for us to share the fact that Jio is now the second largest single county operator in the world with a subscriber base of 355 billion," said Reliance Industries CFO, Alok Agarwal, during the earnings call. So even though subscriber growth is slowing down for the company, it’s still faring better than Bharti Airtel and Vodafone Idea. 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/790814"></div>
]]></cdata></div>



























 And, Jio’s average revenue per user continues to decline for the seventh consecutive quarter hitting ₹120. Usage continues to growth with the company recording 12 billion GB in data traffic and 813 billion minutes of voice traffic. "Both continue to grow quarter after quarter showing stronger levels of customer engagement on our network," stated Agarwal. 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/790865"></div>
]]></cdata></div>



























 The company reported a net profit grew at a yearly rate of 45.4% hitting ₹990 crore during the quarter. It's operating revenue also grew by 33.7% year-on-year to reach ₹12,354 crore. 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/790722"></div>
]]></cdata></div>



























 See also: <a href="https://www.businessinsider.in/business/corporates/news/top-highlights-from-mukesh-ambani-owned-reliance-industries-rils-quarterly-earnings/articleshow/71651084.cms">Reliance Industries posts a record profit even as refining and telecom verticals soften</a> <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-owned-reliance-industries-forms-pact-with-bp-to-sell-aviation-fuel-in-india/articleshow/71651988.cms">Reliance Industries makes a new pact with BP to sell jet fuel in India</a> <a href="https://www.businessinsider.in/business/news/reliance-industries-retail-q2-earnings-report/articleshow/71651677.cms">Reliance Retail surprises with a sharp growth of 27% despite slowdown</a>

You Searched For "jio revenue" and got 5 results

The magic number that Vodafone Idea, Airtel and Jio are chasing is 50

Katya Naidu

Here’s how Reliance Jio aims to gain 50% market share by 2020

BI India Bureau

Reliance Jio’s ‘Prime’ membership begins next month. Here’s how it is impact Airtel, Vodafone and Idea

BI India Bureau

Roaring data demand leads Reliance Jio to expect over 50% of revenue market

BI India Bureau

Reliance Jio added fewer subscribers in Q2 but made more money out of them

Prabhjote Gill

Popular Keywords

Buying Guides