Reliance Jio Infocomm Ltd has gained a huge profit utilizing its JioPhone along with its 4G sim that offers free voice call over the LTE network. India has the second biggest telecom industry and there has been a war started by Reliance Jio. While the non-metro cities offered the company a significant growth, Jio’s growth rate does not reflect in the metropolitan cities such as Kolkata, Delhi, and Mumbai.
On the other hand, the other two telecom companies Bharti Airtel and Vodafone Idea have witnessed a fall of adjusted gross revenue in the non-metro cities. Although Bharti Airtel and Vodafone Idea is still leading the telecom industry in terms of revenue income and subscriber base, Reliance Jio is reducing the gap rapidly. The company has continued to steadily grow its revenue for consecutive four quarters.
According to the data collected by BloombergQuint, Reliance Jio is responsible for one-fourth of the revenue that is eared in the telecom sector in India.
While Bharti Airtel has lost 3% points, Vodafone Idea has lost 9% points to Jio in the second quarter of 2017. Even the other telecom companies such as Aircel Ltd., MTNL Ltd., Reliance Communications Ltd, Tata Teleservices, Telenor have lost almost 10.5% points to the start-up company, Reliance Jio. The small companies like Aircel, Telenor etc have left the market. Reliance Communications Ltd. has also sold its share.
Reliance Jio started a price war that accelerated the drop in the revenue earned by the other telecom operators. While Bharti Airtel and Vodafone Idea faced a 3% and 6% decline in the average gross revenue, Reliance Jio increased its AGR by 16% by adding new subscribers. Lower tariffs are the reason behind the drop in total revenue of the telecom companies during the last few quarters.