Content is the Key Revenue Source for Indian Telcos and Jio is Benefitting from Data War: Ind-Ra

The India Ratings and Research (Ind-Ra) firm, in its May 2018 edition of credit news digest has stated the trends in the Indian telecom sector. According to Ind-Ra, the trends in the telecom sector are subscriber additions, subscriber market share, broadband subscribers, data usage and pricing. Ind-Ra is in a view that content is emerging as the key differentiator and revenue generator in the intensely competitive telecom market. All major telcos are focusing on converting their applications into one-stop place for subscribers wherein a wide range of options in music, movie, sports, television, among others are available to increase data consumption and retain/increase market share, said Ind-Ra.

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Another trend is the decline in the subscriber base. A decline in subscriber base to 1,125 million in April 2018 from 1,183 million in March 2018 could be attributed largely to the closure of Aircel services in various circles and disruption in its interconnect services. All other telcos excluding Aircel reported net subscriber addition of 15.8 million in April 2018. Aircel had 74 million subscribers in March 2018, as per the data released by Trai for the month of April 2018.

Next trend is the Subscriber Market Share. Reliance Jio’s subscriber market share increased 7.9% YoY to 17.5% in April 2018. The share of the top three telcos (Airtel, Vodafone and Idea) increased to 65.4% from 58.1% during the same period. Based on April 2018 data, Bharti Airtel subscriber market share (including Tata Teleservices Limited and Telenor (India) Communications Private Limited) was 33.3% (February 2018: 31.5%) and Vodafone-Idea combined was 37.9% (36.4%).