Reliance Jio Races Ahead of Vodafone in Terms of Revenue Market Share, Claims Second Position

Reliance Jio, the Mukesh Ambani led telco has surpassed the Vodafone India to rank second in the telecom operators’ list as per Revenue Market Share (RMS). Reliance Jio’s extreme pricing techniques and an increased focus in the rural market has helped the telecom carrier in jumping to the second spot this fast. With this leap, the telco has grown closer to the top spot of Bharti Airtel. The telecom watchdog Trai broke the news which reported that Jio’s RMS went up by 253 basis points (bps) one-quarter to 22.4% at the end of the quarter ended June. The rise of the telecom operator has been exemplary in the telecom sector in a very short span starting in 2016 reports  Economic Times.

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While Reliance Jio’s RMS and subscriber base increased substantially, Vodafone’s data showed a decline in its subscriber base and RMD contributing to this exchange of spots. Vodafone’s RMS decreased by 175 bps to 19.3%, while partner Idea Cellular also showed a decline of 106 bps to register RMS of 15.4%. While these two telcos showed a sharp decline, Bharti Airtel thanks to its strong holding was able to better compete with the Mukesh Ambani led telco as it only showed a decline of 12 bps on-quarter, at 31.7%. According to the analysts, the fall in Airtel’s RMS was attributed to the cutting of charges on incoming international calls this quarter.

As per ICICI Securities who analyzed the Trai report, Jio seems to have entered a period of consolidation as highlighted by the data. Jio’s RMS has leapt from 11.6% in Q1 to 22.4% in Q2. Jio’s first challenge was to build a source of stable revenue, after effortlessly accomplishing this task, the latest telco entrant has set its sight on Airtel’s top position.