Content is emerging as revenue generator in the competitive telecom market: Ind- Ra

Reliance Jio subscriber market share increased 7.9 percent yoy to 17.5 percent in April 2018.

    According to a new report by research firm India Ratings, content is emerging as the key differentiator and revenue generator in the intensely competitive telecom market.

    Content is emerging as revenue generator in the telecom market

    It said all major telcos are focusing on converting their applications into one-stop place for subscribers wherein a wide range of options in music, movie, sports, television, among others are available to increase data consumption and retain/increase market share.

    The report also pointed out that a decline in subscriber base to 1,125 million in April 2018 from 1,183 million in March 2018 could be attributed largely to the closure of Aircel Limited's services in various circles and disruption in its interconnect services.

    All other telcos excluding Aircel reported net subscriber addition of 15.8 million in April 2018. Aircel had 74 million subscribers in March 2018.

    While Mukesh Ambani- owned Reliance Jio subscriber market share increased 7.9 percent yoy to 17.5 percent in April 2018 and the share of the top three telcos (Airtel, Vodafone, and Idea) increased to 65.4 percent from 58.1 percent during the same period.

    Based on April 2018 data, Bharti Airtel Limited's (Bharti) subscriber market share (including Tata Teleservices Limited and Telenor (India) Communications Private Limited) was 33.3 percent (February 2018: 31.5 percent) and Vodafone-Idea combined was 37.9 percent (36.4 percent).

    RJio registered the largest revenue market share increase of 460bp, followed by Bharat Sanchar Nigam Limited, which gained 210bp. The remaining telcos combined reported a 480bp decline in the revenue market share.

    Meanwhile broadband subscriber base increased by 7.2 million to 401 million in April 2018, growing by an average monthly growth rate of 3.3 percent over the last 12 months. During the last 12 months ended April 2018, RJio's broadband subscriber market share increased 700bp to 47 percent while the other three major telcos together reported a 500bp increase.

    On rollout of GigaFiber by RJio the firm said that JioGigaFiber would facilitate speeds up to 1Gbps in the broadband segment alongside providing smart home solutions to the users. The comprehensive JioGigaFiber plan would consist of Fiber To The Home (FTTH) broadband service, Jio Giga TV, smart home accessories and a landline connection.

    The impact of the announcement was visible immediately with Airtel offering discounts at its existing broadband plans and removing the restriction on data limits from its broadband plans in Hyderabad.

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