Jio Continues to Lead the Chart With High ARPU Compared to Other Telcos: Ind-Ra

Reliance Jio’s ARPU is higher than that of telcos as we already know that and the telco continues to lead the chart. India Ratings and Research (Ind-Ra), the rating agency has published its September 2018 edition of credit news digest on Indian telecom sector. In the latest news digest, Ind-Ra highlights the trends in the telecom sector with a focus on subscriber additions, subscriber market share, broadband subscribers, data usage, average revenue per user (ARPU) and profitability of the key incumbents. Ind-Ra opined that Reliance Jio has continued on its market share growth trajectory, with high ARPU levels and increased profitability. The growth has been supported by large data allowances at low prices, aggressively priced tariff plans and tie-ups with over the top (OTT) players.

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Jio Continued its Steady Subscriber Growth

In August 2018, 9.8 million wireless subscribers were added in the telecom sector. Jio continued on its strong subscriber growth trajectory and added 12.2 million subscribers, led by the launch of 4G feature phones, while other telcos either reported flat subscriber growth or a decline. Aircel Cellular Limited has not reported subscriber numbers since April 2018. Most of its subscribers would have moved to other telcos due to the closure of its services.

The steady subscriber growth helped Jio gain maximum market share in the wireless department. Jio’s wireless market share for August 2018 increased to 20.5% (July 2018: 19.6%). The increase is further characterised by the reduction in gross revenue of other incumbents. Meanwhile, Jio’s subscriber base grew 5.4% on a monthly basis, while other players such as Bharat Sanchar Nigam Limited and Idea Cellular Limited’s subscriber base fell 0.6% and 1.6%, respectively. However, Vodafone India Limited and Idea Cellular now together hold 37.9% (July 2017: 33.8%) of the subscriber market share.