Reliance Jio Thriving in Tier Two Cities and Rural Areas Thanks to JioPhone

Reliance Jio, the latest telecom entrant in the Industry which caused havoc by its entry into the industry with its extremely affordable prices and unique offerings has been riding the wave of revenue on the back of the success of its Reliance JioPhone. The JioPhone, which is an affordably priced feature phone with 4G enabled and offering almost smartphone-level services, has been one of the prime reasons behind Reliance Jio’s massive growth in the tier two cities and rural areas. The Telecom Regulatory Authority of India, (Trai) has issued new data which states that adjusted gross revenue of the Mukesh Ambani led telco has increased by 18% in the non-metro cities, while it has remained stagnant in the three metro cities of Delhi, Mumbai and Kolkata. On the other hand, the same parameter for the other two telecom operators has witnessed a decline.

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Reliance Jio Leading in AGR, Incumbents Suffer

As per the norms stated by Trai, the adjusted gross revenue is calculated after deducting the interconnect usage charges and other expenses from the revenue. While, the revenue market share, another important parameter in the industry, is mapped on the basis of adjusted gross revenue along with national long distance revenue.

As per this new report by Bloomberg, the telco has now seen a rise in revenue market share for the fourth consecutive quarter, thus closing in on its competitors Vodafone Idea and Bharti Airtel. The newly merged telco, Vodafone Idea has suffered the wrath of the industry, with dented revenue while the Mukesh Ambani led company has managed to capture more than one-fourth of the total industry revenue.

A Quarter of Suffering for Vodafone Idea

Taking a more in-depth look at the report, it is evident that Vodafone Idea was on the crosshair this time as the telco lost nearly nine percentage points against Reliance Jio, while Airtel and BSNL each dropped three and four percentage points during the second quarter of the last financial year.

Speaking of the adjusted gross revenue in the quarter ending September, the Sunil Bharti Mittal led telco, Bharti Airtel witnessed a decline of 3%, whereas the current biggest telco of the country, Vodafone Idea registered a drop of 6% in its revenue. In contrast, Reliance Jio made a 16% leap in the same area thanks to the massive subscriber addition, mostly led by its affordable feature phone offering – the JioPhone. Speaking for the figures of the entire industry, there was a drop in adjusted gross revenue in the last quarter also the revenue dropped in four of the previous five quarters thus signalling affirmative to the trend of a weak second quarter for telecom operators.

Barring the national long-distance revenue for Reliance Jio, the telco’s revenue market share currently maps to be 33.7%, a figure which no other telco claims right now. One of the reasons behind this seems to be Reliance Jio’s irrelevance with national long-distance revenue since the telco remains majorly data-driven.

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30 Comments on "Reliance Jio Thriving in Tier Two Cities and Rural Areas Thanks to JioPhone"

 

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Prithvi
November 26, 2018 10:11 am 10:11 AM

This is fantastic for India. Its a boon for people who can’t afford data or larger talk times. Good job, Jio!

sabari
November 26, 2018 9:34 am 9:34 AM

those who cannot recharge for rs.35 can move to jio phone for rs.49 unlimited or rs.149 unlimited .

Nikhil Mumbai-Pune
November 26, 2018 12:51 pm 12:51 PM

149 is really costly for those who don’t want to recharge with 35.

NTR
November 26, 2018 3:27 pm 3:27 PM

Yes nihil too high

Sudhar
November 25, 2018 8:47 pm 8:47 PM

Soon JIO and BSNL Base will increase since Airtel and Vodafone Idea are forcing 35 rupees form all genuine customers even if they have plenty of money in prepaid balance. I am 100% thier money plan will not workout.

sabari
November 26, 2018 9:31 am 9:31 AM

is jio giving free calls with rs.10 for one year atleast one month?

Faraz
November 26, 2018 2:55 pm 2:55 PM

They are giving incoming call and SMS free even in unrecharged number + free benefit. Your fav chartel will never give

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Prashant
November 26, 2018 5:44 pm 5:44 PM

thats true , i went to an area in maharastra (dapoli) where jio service is not available. so for 5 months (april-september) did no recharge as there was no signal. but coming back to mathura, i called from my idea number and suprisingly jio number rang. otherwise as per rules after 90 days company cancels the number permanently, or temporarily disconnected voice comes.
he he.
i am just keeping idea number as backup.

Nikhil Mumbai-Pune
November 26, 2018 10:16 pm 10:16 PM

Idea is superb in Dapoli. How was your experience with Idea?

Prashant
November 27, 2018 8:24 pm 8:24 PM

airtel and vodafone has best coverage in 2g,

4g works like charm if you are outside your room. others fluctuate a lot so do not expect 4g internet from idea.

local mobile vendor told that some mafia goons are not letting Jio to enter in Dapoli otherwise jio has planned to spider all dapoli with fibre cables.

but now with so much data around i am getting sick, my shoulders and neck started paining while in dapoli as there are no theaters and parks to roam around i was on mobile most of free time 🙁

Arena
November 25, 2018 10:41 pm 10:41 PM

They should have brought 39 plan instead. 39 min per day on 2g/3g and 1000 monthly min on 4g network.. Which is not massive with their old infra. Ya its not equal to jio 4g, still they can make money. Who on earth use for calling only. Those who don’t have any commercial things to do on web, uneducated old and very basic users will stay on existing network with their old devices. Else they buy jio phone and pay 49 instead of limited 35.

Nikhil Mumbai-Pune
November 26, 2018 12:54 pm 12:54 PM

Only 399 with 2GB/Day for 84 days and 499 with 3GB/Day for 84 days can bring Airtel in profits. 299 with 15GB data with unlimited calling for 84Days.

kavin
November 26, 2018 7:48 am 7:48 AM

good suggestions ..+1

Chinmoy
November 25, 2018 9:21 pm 9:21 PM

Exactly, I am seriously thinking of porting to BSNL

Mehboob Hossain
November 26, 2018 5:12 pm 5:12 PM

Mee also.

tagore
November 26, 2018 7:57 pm 7:57 PM

No doubt, the idiotic BSNL will jump on the bandwagon. They are short on service and efficiency and long on imitation of big players. That is how the ‘auntie-uncle’ staffed BSNL ruined itself.

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