Reliance Jio effect: Incumbent telcos lost significant market share in 2016

Reliance Jio has managed to garner 6.4 percent market share by the end of 2016.

    Last year was not good for incumbent telecom players as they not only reported losses in revenue, in fact, they also saw their market shares shrinking significantly. And this as we know was mainly due to the introduction of Reliance Jio in the market. While others saw a declining phase, Mukesh Ambani-owned Reliance Jio did manage to garner 6.4 percent market.

    Reliance Jio effect: Incumbent telcos lost significant market share

    We all know how Jio played the game as it offered enticing offers which inevitably lured many customers to use the network thus increasing Jio's market share. But this did have a negative impact on other service providers. As per the indicator report of the Telecom Regulatory Authority of India (TRAI), India's largest telecom service provider Bharti Airtel saw its market share dip to 23.58 percent at the end of December 2016 from 24.07 percent in the previous year.

    The report also notes that Vodafone added 11.09 million subscribers last year but its market share slips to 18.16 percent from 19.15 percent in December 2015.

    Same was the case with Idea Cellular. The company reported 16.9 percent market share with a subscriber base of 190.52 million as on December 2016 but in 2015 it had 17.01 percent market share.

    However, Bharti Airtel remained the leading service provider with 265.85 million wireless subscribers at the end of last year, followed by Vodafone(204.69 million).

    Talking about the internet market share, the report further says that Airtel held the top position with 21.67 percent of market share of internet subscribers followed by Reliance Jio with 18.43 percent. Top 10 Service Providers together held 98.09 percent of total internet subscriber base at the end of December 2016 and in the wired internet segment, BSNL held 61.13 percent market share with 13.15 million subscribers, followed by Bharti with 2.04 million subscribers.TRAI also pointed out that in a wired broadband segment, BSNL held 54.85 percent market share with 9.95 million subscribers followed by Bharti with 2.04 million subscribers. In the wireless broadband segment, Reliance Jio held 33.11 percent market share with 72.16 million subscribers followed by Bharti (19.05 percent) with 41.53 million subscribers.

    Top five service areas in respect of broadband subscriptions were Maharashtra (20.05 million), Tamil Nadu including Chennai (19.78 million), Andhra Pradesh (18.52 million), Delhi (18.28 million) and Karnataka (17.33 million).


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