According to a recently released TRAI report, Jio’s current revenue market share is 33.7% and no telco is even remotely close to this number. The company launched its own 4G-enabled feature phone last year, dubbed Jio Phone. The handset has reportedly played a major role in the success of Reliance Jio.
Other than regular telecom services, Reliance Jio has remained active in several peripheral segments as well. Reliance Jio is currently the third largest telecom operator in India. Ever since the launch, the Mukesh Ambani-owned telco has remained a threat to other telecom operators. In the span of two years, Jio has stuck to the cost-effective prepaid recharge offerings and managed to build a massive user base. Encouraged by the success of Jio Phone, the company introduced its second generation this year and the handset proved equally successful, contributing majorly to Jio’s market status.
Reliance Jio’s Current Market Statistics
As per data released by TRAI, Reliance Jio is currently ruling the rustic areas and tier II cities. The adjusted growth revenue in these areas has gone up by 18%, while there is no progress in the metro cities. The Jio Phone is highly popular in the rural and tier II areas and industry experts believe it to be one the main reasons for Jio’s growth. To recall, areas like these used to be Idea’s territory but the telco is nowhere near Reliance Jio in terms of subscribers, market share or revenue.
Reliance Jio now holds over one-fourth of the overall industry revenue after seeing a rise in the revenue market share for four consecutive quarters. In comparison, Bharti Airtel and Vodafone Idea have treaded the opposite side of the same curve in the previous quarter. The data further reveals that Vodafone Idea recorded a decline of 6% and Airtel registered a 3% drop in the adjusted growth revenue of the last quarter. To recall, last financial year was not very different for the telcos as Airtel and BSNL lost 3 to 4 percent revenue market share and Vodafone Idea lost 9 percent of it to Reliance Jio. At the time, Vodafone Idea was in the making and it did not get much time to work on the new strategy. Recently, the company has shared its plans to move forward as an entity and they look promising. Let’s see if the largest telecom operator in the country gets the largest revenue share anytime soon. For now, Reliance Jio is at the forefront with its feature phones and the upcoming broadband services.
Reliance Jio in Tier-II Areas and Metro Cities
We have established that Reliance Jio is a huge success in the rural and tier II cities, owing to Jio Phone. The 4G-enabled handset is a great option that offers the smartphone experience at an affordable price. Jio Phone is largely responsible for the company’s massive user base in these areas. The overall figures are great but the company still has a long way to go in the metro cities. The growth in the urban areas is inert and the competition is high. Fortunately, Jio already thought of it and we might see the situation getting fixed shortly. We are talking about Jio GigaFiber, the ambitious broadband project from the company. Jio GigaFiber will be connecting 1,100 cities in the country and the pricing will remain aggressive. The broadband service is yet to launch on a full commercial scale. Jio is already getting an overwhelming response before the launch. The company has recorded over thousands of registrations in the metro cities. The full-scale launch will get Jio more subscribers, further adding to its revenue numbers.