Jio overtakes Airtel as India’s No. 2 telco
Pankaj.Doval@timesgroup.com
New Delhi:25.04.2019
Nearly two-and-ahalf years after launching mobile phone services, Mukesh Ambani’s Reliance Jio has overtaken Bharti Airtel’s subscriber base to emerge as the second-largest telecom company in the country.
Jio, which has a customer base of 30.6 crore, now trails only Vodafone-Idea. Airtel has 28.4 crore subscribers while Vodafone-Idea had announced that it had 38.7 crore subscribers in December 2018.
Airtel’s numbers were confirmed by a company spokesperson after TOI sent a query on Tuesday evening.
A telecom industry analyst said that the pace of growth of Jio’s subscriber additions may see the company overtake Vodafone-Idea in the coming quarters. “Vodafone-Idea is the most vulnerable of the three private players in the market, and it may just be a matter of few more quarters, may be three-four, before it is overtaken by Jio,” the analyst said, requesting anonymity as he advises many telecom companies.
For Sunil Mittal’s Airtel, which dominated the Indian telecom space for almost two decades, the fall has been dramatic – it used to be the market leader till the middle of last year before being edged out by the new entity that formed after the merger of Vodafone India and Idea Cellular.
The meteoric growth in Jio’s business since it launched services in September 2016 has been fuelled by aggressive and dirt-cheap consumer tariff plans with the company launching operations with free voice call facility. “The remarkable growth of Jio has been unprecedented and the company is expected to dominate the customer acquisition space through aggressive and innovative tariff plans, including bundling of content packages,” said Mohan Shukla, CEO of FinX-Pros, a consultancy firm.
Jio has been adding subscribers at breakneck speed at a time when Airtel and Vodafone-Idea have been weeding out low-paying users. According to a report by JP Morgan, Jio added 2.7 crore new customers between January and March 2019, after logging in 12 crore new members through 2018. Importantly, the company continues to lead the data space through its 4G-only business, and is actively scouting for more customers with cut-throat tariffs. “… we see no prospects of a tariff hike in FY2019-20, unless Jio’s net-additions (of subscribers) come down,” JM Financial said in a just-released report. Jio’s aggressive entry into the telecom business – in Mukesh Ambani’s second avatar in the mobile space – had unshackled the financials of the industry completely. Airtel, which had initially accused Jio of engaging in “predatory pricing” to gain market share, has seen its domestic operations slip into losses, while Vodafone India and Idea were forced to strike synergies and lower operating costs.
Pankaj.Doval@timesgroup.com
New Delhi:25.04.2019
Nearly two-and-ahalf years after launching mobile phone services, Mukesh Ambani’s Reliance Jio has overtaken Bharti Airtel’s subscriber base to emerge as the second-largest telecom company in the country.
Jio, which has a customer base of 30.6 crore, now trails only Vodafone-Idea. Airtel has 28.4 crore subscribers while Vodafone-Idea had announced that it had 38.7 crore subscribers in December 2018.
Airtel’s numbers were confirmed by a company spokesperson after TOI sent a query on Tuesday evening.
A telecom industry analyst said that the pace of growth of Jio’s subscriber additions may see the company overtake Vodafone-Idea in the coming quarters. “Vodafone-Idea is the most vulnerable of the three private players in the market, and it may just be a matter of few more quarters, may be three-four, before it is overtaken by Jio,” the analyst said, requesting anonymity as he advises many telecom companies.
For Sunil Mittal’s Airtel, which dominated the Indian telecom space for almost two decades, the fall has been dramatic – it used to be the market leader till the middle of last year before being edged out by the new entity that formed after the merger of Vodafone India and Idea Cellular.
The meteoric growth in Jio’s business since it launched services in September 2016 has been fuelled by aggressive and dirt-cheap consumer tariff plans with the company launching operations with free voice call facility. “The remarkable growth of Jio has been unprecedented and the company is expected to dominate the customer acquisition space through aggressive and innovative tariff plans, including bundling of content packages,” said Mohan Shukla, CEO of FinX-Pros, a consultancy firm.
Jio has been adding subscribers at breakneck speed at a time when Airtel and Vodafone-Idea have been weeding out low-paying users. According to a report by JP Morgan, Jio added 2.7 crore new customers between January and March 2019, after logging in 12 crore new members through 2018. Importantly, the company continues to lead the data space through its 4G-only business, and is actively scouting for more customers with cut-throat tariffs. “… we see no prospects of a tariff hike in FY2019-20, unless Jio’s net-additions (of subscribers) come down,” JM Financial said in a just-released report. Jio’s aggressive entry into the telecom business – in Mukesh Ambani’s second avatar in the mobile space – had unshackled the financials of the industry completely. Airtel, which had initially accused Jio of engaging in “predatory pricing” to gain market share, has seen its domestic operations slip into losses, while Vodafone India and Idea were forced to strike synergies and lower operating costs.
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