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Do You Think #Jio Will Lead The #Indian #Telecom Sector by 2021?

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Do You Think #Jio Will Lead The #Indian #Telecom Sector by 2021?

According to a recent report of Bernstein, Reliance Jio will leave behind the two competing telecom companies Bharti Airtel and Vodafone Idea by 2022. The report reveals that the company will cross the revenue share of the companies by 2021 and will beat the subscriber base by 2022.

The report also emphasized the fact that the 4G VoLTE phone or the JioPhone will be utilized by the company until the objectives are achieved. As per the report of Bernstein, shareholders of Reliance Jio’s parent company Reliance Industries are happy to see the gain that Jio has brought. Besides, it is assumed that none of the two competing telecom companies will get involved in a subsidy war with Jio.

Furthermore, the global investment management company anticipates that Reliance Jio will monetize its subscriber base once it becomes the leader in the industry. It will increase the pricing of its services significantly.

Since Jio has entered the market in 2016, the competitors had to revise their pricing strategy to retain their customer base. While the big companies such as Vodafone, Airtel etc had gone through significant loss, the small companies like Aircel exited the market. Later, Vodafone India joined hands together with Idea Ltd and the new entity Vodafone Idea was formed. It leaves the Indian telecom sector with only three private companies – Reliance Jio, Bharti Airtel and Vodafone Idea.

As Jio has recently boosted its performance in the rural areas and in some critical states, the Revenue Market Share of the company increased by 375 basis points. On the contrary, the RMS of Airtel dropped 75 bps.

Bharti Airtel and Vodafone Idea decided not to come up with an offering in response to JioPhone. Thus, the companies have lost 37 million and 13 million users respectively. It is assumed that if the companies do not launch their own 4G feature phones, they may lose a total of 56 million customers by the end of 2019.

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