1 min read.Updated: 26 Feb 2019, 03:09 PM ISTLivemint
While the pace of Reliance Jio’s monthly user base additions has slowed, it is still easily outpacing Airtel and Vodafone Idea
Reliance Jio has gained share in urban areas despite Airtel and Vodafone Idea's focus on these regions
The telecom industry’s revenue may have stagnated, but Reliance Jio’s relentless focus on customer additions has brought it within touching distance of market leadership. The company’s revenue in the December quarter rose 15% sequentially, taking its revenue market share to 29.2%, shows regulatory data collated by analysts at Jefferies India Pvt. Ltd.
If the current trends continue, Reliance Jio will emerge as the market leader in the current quarter (Q4 FY19). After all, its market share has risen by more than 350 basis points in each of the past two quarters, and the difference between Jio and the market leader is now less than 300 basis points, shows Jefferies India data.
While the pace of Reliance Jio’s monthly net subscriber additions has slowed, it is still easily outpacing peers. The company also gained share in urban areas despite Airtel and Vodafone Idea's focus on these regions.
“This (revenue market share) may rise eventually when Reliance (Jio) pulls well ahead of peers, but even then, higher usage (not yields) may hold the key, likely keeping infrastructure and content spend high," add analysts at Jefferies India.