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21
June 2017
The
growth of Reliance Jio subscriber base and its free offering till 2016-17
fourth quarter has led to a 11.7 per cent year-on-year decline (8.5 per cent quarter-on-quarter
decline) in industry revenues, a report by Jefferies said here on Wednesday. The Total Investment & Insurance
Solutions
"The
growth of Reliance Jio subscriber base and its free offering till the end of
fourth quarter of 2016-17, has led to a 11.7 per cent year-on-year decline (8.5
per cent quarter-on-quarter decline) in industry revenues. The Total Investment & Insurance
Solutions
"Reliance
Jio effect was also evident in the decline being maximum in metro and A circles
where Reliance Jio has a higher penetration, and where the smartphone ecosystem
is better developed," the report said. The Total Investment & Insurance Solutions
The
report said Jio has continued to increase its subscriber base steadily to over
108 million by the end of fourth quarter of 2016-17 with active subscriber base
of 80 million. The most recent month has seen a slowdown in additions, primarily
on the back of a limited 4G device ecosystem.
Total
4G smartphone installed base of 131 million in India implies that Jio is
penetrated into 86 per cent of the devices (61 per cent by active subscribers). The Total Investment & Insurance
Solutions
It
stated the higher growth from data services, decline in voice and the lower
investments made by operators outside the top three has started showing up in
steeper decline in revenue for them.
"The
Top-3 combined now have a 76 per cent revenue market share in the industry. As
we stressed in previous reports, this decline in smaller operators would be
extrapolated to industry consolidation. However, we think India will remain a
five player market at best, with three equally strong competitors (Bharti,
Voda-Idea combined, Jio) being as bad for incumbents as a fragmented market at
present," the report added.The
Total Investment & Insurance Solutions
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