SME Times News Bureau | 13 Jun, 2018
Indian telecom revenues (adjusted gross revenues, AGR) fell another 7
per cent quarter-on-quarter (QoQ) and are down 25 per cent from the
fourth quarter of 2015-16 levels, revealed a report by Jefferies.
It
said the telecom industry revenues are now back to 2012-13 levels. "The
fall was precipitated by price cuts at end-January by Jio and
incumbents. Industry ARPUs (average revenue per users) fell another 11
per cent QoQ and now stand at Rs 70/sub/month."
The quarter saw
the fringe players' AGR revenue market share (RMS) falling 600 basis
points (bps) led by the exit of Aircel and Reliance Communications
(RCOM).
"Despite this, Idea lost 30bps RMS QoQ with access
provider RMS loss higher at 80bps. Idea lost RMS in 14 of the 22
circles. More importantly, it lost significant share in its key markets
of MP, UP (W) and Maharashtra."
Jio's market share now stands at 19.1 per cent and has overtaken Idea (at 16 per cent).
The
report said Jio's share though is still well below its ambition (50 per
cent) and "our stable state expectation of 30 per cent plus. With
smaller players having only 4% RMS, incremental gains for Jio will have
to come from incumbents' losses".
