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.