Reliance Jio costs Rivals Rs 7,200 Crore
When Reliance Jio was launched little did we know that it will take the industry by storm. Reliance Jio’s dirt-cheap tariffs surprised the entire nation and shook its rivals. The leading telcos had to post loss in the annual report.
According to latest news, Reliance Jio Infocomm’s offers and tariffs cost the Indian telecom sector more than Rs 7,000 crore. As per the data released by TRAI, the industry saw its revenue dip 5 per cent in the last financial year, the first time ever.
According to data, the revenue of Bharti Airtel and Idea Cellular grew in the half year ended September last year, but it fell in the subsequent six months after the launch of Reliance Jio. According to Vodafone India’s financial statement, its revenue also rose in the half year ending September and then saw a decline in the latter half of the year.
The newest telecom service provider offered free data and voice services for seven months, before it started to charge from April. Reliance Jio forced the existing players to introduce equally cheaper offers or to lose its subscriber base. This led to the rise in the top three telecom companies’ market share.
Bharti Airtel, Vodafone India and Idea Cellular collectively control 81 per cent of the revenue market share, gaining 340 basis points in fourth quarter of financial year 2017.
However, in direct terms, the adjusted gross revenue of the top three companies dipped by 10 per cent to Rs 24,100 crore. It fell 14 per cent to Rs 29,900 crore for the industry.
Among the top three telecom companies, Airtel gained the most as its market share rose by 160 basis points to 34.9 per cent. Idea Cellular ranked second with a 140 basis points jump in its share.
While the top operators managed to grow market share, the real gain or decline will be predicted once Reliance Jio reports its revenue.
The impact of the data war has led to Reliance Jio to become India leading 4th telecom service provider.