The Entry of Reliance Jio Rattled the Revenue of Bharti Airtel, Vodafone India, and Idea Cellular: Eco Survey Report

The Indian telecom industry used to be in a different league a year ago, but with the entrance of the Mukesh Ambani’s Reliance Jio, the industry has experienced a “renewables shock.” Reliance Jio has changed the landscape of the industry dramatically by offering free LTE services and cutthroat tariff plans. End of the day, consumers are the most benefitted ones with these changes.

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“The entry of a new player has extended competition from cheaper calls to cheaper data,” says Eco Survey in its report. The report also outlines that Reliance Jio, which launched its services back in September 2016 has brought down the average revenue per user (ARPU) of the industry.

The ARPU of the industry came down by 22% in 2016-17, compared to the long-term (December 2009-June 2016) ARPU, and by about 32% since September 2016.

The survey also noted that the worrying factor is that the share of the sector in non-performing assets (NPAs) had increased after Jio’s entry. “Though the total NPAs of the telecom sector in public sector banks has fallen to Rs 2,335 crore in 2016-17 from Rs 3,456 crore in 2015-16, the share of NPAs of infrastructure sector increased to 8.7 per cent in 2016-17, from five per cent in 2015-16,” the Survey said.

Speaking about the revenue of the industry leaders such as Bharti Airtel, Vodafone India, and Idea Cellular, they all have experienced a major dip in revenues. Bharti Airtel’s revenue is down by 7.98%, while Vodafone has seen a downfall of 5.14%, and lastly, Idea Cellular experienced a revenue fall of 4.91% in the third quarter of 2016-17, compared with the previous quarter.

“In the telecommunications case, not only is the banking system exposed but also the government to whom the companies owe a variety of fees and taxes,” the Survey said.

According to the Eco Survey report, the mobile industry in India currently contributes to 6.5% ($140 billion) to the country’s gross domestic product. It also employs over four million people, directly and indirectly.

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49 Comments on "The Entry of Reliance Jio Rattled the Revenue of Bharti Airtel, Vodafone India, and Idea Cellular: Eco Survey Report"

 

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Jatinder
August 13, 2017 7:28 pm 7:28 PM

God going JIO, i have complained to jio regarding network coverage and they are assuring a tower in my area soon.

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Jio lover
August 14, 2017 5:49 am 5:49 AM

Its trap boss

Sunny | Lucknow
August 13, 2017 10:23 pm 10:23 PM

Man…you’re so gullible. Not your fault though. Stay positive.

Rinu
August 13, 2017 9:27 pm 9:27 PM

Yes. Yes. You will get it today itself.

Jatinder
August 14, 2017 9:22 am 9:22 AM

At least they are increasing coverage. Recently, i went to a village in kurukshetra where bsnl has no coverage , avoid group has only 2g, but jio is live there with full 4g signals.

Rinu
August 14, 2017 4:59 pm 4:59 PM

That’s not a reason for fooling innocent customers. Also, here there are many villages where Jio has no coverage at all whereas BSNL and AVOID have 3G coverage. They might increase coverage in future but by that time others too will have 4G coverage there.

kiku
August 13, 2017 8:24 pm 8:24 PM

LOL don’t fall for copy paste response they send to everyone, they assured me some 6 months ago nothing happened, i tweeted called about it but telcos should learn from Jio how complaint could be closed at their end without customer knowledge.

Biswadeep,Kolkata
August 13, 2017 10:09 pm 10:09 PM

Truly Said

Arena
August 13, 2017 4:40 pm 4:40 PM
Dear customer, we have recently launched MRP 309 – 2 months ALL UNLIMITED plan on the 2nd recharge. Since you had already made a 2nd recharge of Rs 303 that provides 1 month benefit, we are extending a COMPLIMENTARY benefit of 1 ADDITIONAL month of ALL UNLIMITED for you. To redeem, visit My Voucher Section in MyJio app. Please note, this complimentary benefit will get activated immediately once you redeem it from MyJio. With love from Jio. Please don’t activate now…if you did this plan is running I parallel to present one… Hope jio fix this, else no advance rechargers… Read more »
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ANIRUDDHA DHAR|Santragachi|WB
August 14, 2017 8:47 am 8:47 AM
You did the mistake of manually redeeming the voucher as it clearly written ” please note the voucher would be activated immediately”. Had you not manually redeemed it then it would follow the upcoming recharge schedule as earlier I think. FYI I recharged 99+149+303 so at first till 21st July 2017 susu offer was running then 149 is currently running which will end on 18 August but in myjio app currently it is showing 303 as upcoming plan with a “activate” button. So I assume if I press the activate button now i.e before the end of 149 validity it… Read more »
Faraz
August 13, 2017 8:39 pm 8:39 PM

But till 9 sep is 1 month only na.
Check your validity.
How you are clamming about 2 months.

kiku
August 14, 2017 12:03 am 12:03 AM

he is enjoying 2GB/day instead of 2 months validity, simple.

Biswadeep,Kolkata
August 13, 2017 10:15 pm 10:15 PM

What I understood…. Jio gave him an extra Voucher of 303 which has 28 Days validity … Then he thought … even if he apply that voucher it will get activated after the current 303 Plan for 28Days ends …. But unfortunately , instead of getting queued ….the extra Voucher activated along with the Main 303 one …

Arena
August 14, 2017 4:26 am 4:26 AM

But it got queued for user with 499 plan….redeemed just like me. His validity is till Oct 7.
In my case of 303…it is 2 active plans, it’s against jio plans T.C in any logic of free or paid….hope they fix it.

1gb plan+1gb plan can’t be a 2gb plan….jio might fix.

kiku
August 13, 2017 8:26 pm 8:26 PM

hey arena are you using some custom ROM?

Arena
August 14, 2017 4:36 am 4:36 AM

Nope…One plus 5 Stock rom., i didn’t find any reasons to leave stock rom,mostly only for Android P….now my lenovo P2 works only without sim card.

Nikhil
August 14, 2017 6:07 am 6:07 AM

Sell Lenovo P2 to me for dirt price lol!!!!!

Nikhil
August 14, 2017 6:06 am 6:06 AM

Hahahahahahahahahahahaha

Rajesh
August 13, 2017 3:12 pm 3:12 PM

Received message from jio:

Dear customer, we have recently launched MRP 309 – 2 months ALL UNLIMITED plan on the 2nd recharge.
Since you had already made a 2nd recharge of Rs 303 that provides 1 month benefit, we are extending a COMPLIMENTARY benefit of 1 ADDITIONAL month of ALL UNLIMITED for you.
To redeem, visit My Voucher Section in MyJio app. Please note, this complimentary benefit will get activated immediately once you redeem it from MyJio. With love from Jio.

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