Flushed with new subscribers, and rising profits, cash-rich Reliance Jio has beaten Vodafone to claim #2 position as per revenues.
But how long will this lead last?
We try to find out!
Jio Has Officially Beaten Vodafone To Claim #2 Spot!
As per latest numbers coming in from TRAI, Reliance Jio’s Revenue Market Share or RMS has now increased to 22.4% for the quarter ending June.
This has happened as Jio was able to expand their RMS by 253 basis points, as they added more paying subscribers as any other telco.
At the same time, Vodafone’s RMS decreased by 175 bps to reach 19.3%.
Here is the new ranking of telecom operators, based on revenues:
#1 Airtel: 31.7% revenue market share (decrease of 12 bps)
#2 Jio: 22.4% revenue market share (an increase of 253 bps)
#3 Vodafone: 19.3% revenue market share (decrease of 175 bps)
#4 Idea:15.4% revenue market share (decrease of 106 bps)
Note here, that although Airtel’s bps decreased, their revenue market share has actually increased from 30.7% to 31.7% in the quarter ending June.
At the same time, the revenue share of Jio has increased to 22.4% from 11.6%
This means that loss in revenue market share of Vodafone and Idea has benefitted both Airtel and Vodafone.
But How Long Will This Lead Last?
If we convert the revenue market share into actual numbers, then here is the breakdown:
Airtel: Revenues of Rs 10,200 crore
Jio: Revenues of Rs 7200 crore
Vodafone: Revenues of Rs 6200 crore
Idea: Revenues of Rs 5000 crore
As we all know, regulatory authorities have cleared Vodafone-Idea merger, and by the end of the year, the new entity: Vodafone Idea will come into picture.
Once that happens, the overall revenue of the new entity (based on June quarter numbers ) will reach Rs 11,200 crore, thereby becoming the biggest Indian telecom.
If we observe number of subscribers, then right now Jio is placed at #4 position, with 215 million subscribers, whereas Airtel is still at #1 with 300 million subscribers.
Vodafone and Idea are at #2 and #3 position, with 220 million and 218 million subscribers. Once they combine, then their total subscriber base would be around 440 million subscribers.
Overall, the telecom sector witnessed an increase in revenue of 1.3% to reach Rs 32,200 crore for the quarter ending June.
Now, all eyes are set on Reliance Jio and Airtel, and how they manage to cope with the combined force of Vodafone and Idea.