Relience Jio may be India's top leader in market by 2021- Analysts
By MYBRANDBOOK
The highly pronounced Indian mobile network operator Relience Jio Infocom Ltd., Owned by Reliance Industries and headquartered in Navi Mumbai, Maharashtra, could reach the leading position in India on a revenue basis by 2021 and on a subscriber basis by 2022, given its current rate of ongoing customer acquisition, Sanford C. Bernstein & Co. analysts Chris Lane and Samuel Chen reported today.
Jio, as per the agency, will continue to add significant customer numbers as they continue to subsidise their JioPhones. Jio launched a free-for-life call service last year that triggered a price war and consolidation in one of the world’s most crowded mobile markets and it has consistently been adding 6 to 10 million new active customers per month (as measured by the VLR), roiling the world’s largest telecommunications sector after China’s. Most of these additions are due to customers taking a highly subsidized JioPhone. These customers are mainly located in rural area, as evidenced by Jio's market share growth in 'B' and 'C' circles. The ensuing disruption forced smaller operators to quit, merge or go bankrupt. Newly merged Vodafone Idea has toppled Bharti Airtel to become India’s top operator, while Reliance Jio has quickly added subscribers to gain the No 3 spot.
Both Bharti and Vodafone management have indicated they do not believe in handset subsidies for pre-paid users.
Bernstein on his report, added that, it is assumed Jio’s to keep selling its subsidized JioPhones, 4G phones it sells for a refundable deposit of $23, until it reaches the No 1 position. Bernstein said average revenue per unit would probably rise for Bharti Airtel and Vodafone Idea this year as they cancel user contracts that generate little revenue. The research firm does not expect 3G/4G pricing to start to creep up until 2020.
Bharti Airtel recently disclosed 100 million customers currently spending less than Rs 35 per month. "We estimate this number for Vodafone Idea at ~150 million. Assuming 20% of these customers to exit or leave the operators, would result in Bharti losing ~20 million customers and Vodafone Idea losing a similar ~30 million. These customers will also be unable to meet the lowest recharge requirements for Jio, meaning they will either exit the market or migrate to BSNL/MTNL," analysts said.
The loss of low-value customers will help increase ARPU. "We estimate ARPU based on three cohorts – 3G/4G users, 2G voice and data users, and 2G voice only users," they said.
The introduction of the new Rs. 35 minimum will only impact the 2G voice only users – lifting this cohort from Rs ~20 at present to around Rs 35. This, plus the loss of lower end subscribers, should result in the average blended APRU for Airtel increasing by 12% to Rs 113 and for Vodafone Idea seeing their ARPU increase by 14% to Rs 101, as per the analysis.
BREAKING NEWS
TECHNO TRENDS
InterGlobe’s Rahul Bhatia and C.P. Gurnani together announce
In a move that is set to transform the AI landscape, Rahul Bhatia, Group M...
Download masked Aadhaar to improve privacy
Download a masked Aadhaar from UIDAI to improve privacy. Select masking w...
Sterlite Technologies' Rs 145 crore claim against BSNL rejecte
An arbitrator has rejected broadband technology company Sterlite Technolog...
ID-REDACT® ensures full compliance with the DPDP Act for Indi
Data Safeguard India Pvt Ltd, a wholly-owned subsidiary of Data Safeguard ...
E-Magazine
TECHNOTAINMENT
Salman Khan trolled for singing with B Praak at Anant Ambani's
To celebrate Mukesh Ambani's youngest son Anant Ambani’s 29th birthday
Disney+ Hotstar wins the Best OTT Platform of the year
Film Critics Guild and Group M Motion Entertainment, in collaboration with
MOVERS & SHAKERS
SISL elevates Ankita Wadhawan as CEO—End User Computing
The IT service provider, SISL in a LinkedIn post announced the elevation
InfoVision appoints Radhika Venkatraman to its Advisory Board
Global digital services company, InfoVision has announced the appointment
OPEN YOUR EYES
INTERVIEWS
CommScope celebrates its 25 years of legacy in India by contin
A strong brand must also reflect the company values and speak exactly what
Kaspersky securing the digital landscape by offering enhanced
Kaspersky is a thought leader in cybersecurity that identifies threats by p
HOT PICK
Canon India Introduces 4K Remote PTZ Camera Controller & 4K In
Canon India, a leading company in digital imaging solutions, further solidi
Dell Technologies launches the new consumer and gaming portfol
Dell Technologies has unveiled its newest line of AI-enabled consumer PCs
MAKE IN INDIA BRANDS
FRESHWORKS TECHNOLOGIES PVT. LTD.
MATRIX COMSEC PVT. LTD.
JUVAS SOLUTIONS PVT. LTD.
INFOSYS TECHNOLOGIES PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Technology Icons Of India 2023: Harsh Jain
Harsh Jain is an Indian Entrepreneur, the co-founder and CEO of the In...
Technology Icons Of India 2023: Madhabi Puri Buch
Madhabi Puri Buch is the chairperson of the securities regulatory body...
Technology Icons Of India 2023: Natarajan Chandrasekaran
Natarajan Chandrasekaran is the Chairman of the Board of Tata Sons, th...
PARTNER SPEAKERS
PSU
PGCIL transforming India with its wide power transmission network
Engaged in power transmission, POWERGRID or PGCIL is a stated owned In...
C-DOT enabling India in indigenous design, development and production of telecom technologies
An autonomous telecom R&D centre of Government of India, Center of Dev...
NPCI leading India towards Digital payments
The National Payments Corporation of India (NPCI) is an initiative tak...
VIDEOS
Top 25 Brands
Value-Added Distribution
ACCERON INFOSOL PVT. LTD.
It is a leading value added distributor in the IT security space and h...
BEETEL TELETECH LTD.
: Beetel is one of the oldest and most reputed brands in the Industry,...
TEXONIC INSTRUMENTS
Texonic has carved a niche for itself in the Technology Distribution i...
ITFORUM 2024
WIITF 2024
CMO of the Year
WOMEN LEADERSHIP
EMINENT CIO's OF INDIA
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
