Reliance Jio Might Garner 41% Market Share Soon

Reliance Jio has managed to garner 33.47 market shares, and now it is likely to increase its share to 41 percent of the customer market. Besides, it is expected that Jio might achieve a 44 percent revenue market by the end of FY24.

"RJio's market share in wireless is expected to increase to 41 percent/44 percent (subscriber/revenue) by the end of FY24 from 37 percent each at the end of FY20. We expect RJio's EBITDA margin to rise to 45 percent/52 percent by FY21/24 led by (a) operating leverage from tariff hike and (b) margin accretive GigaFiber," said brokerage Axis Capital in its report.

In fact, the analysts believe that Jio's partnership with Google might give a tough competition to its rivals like Vodafone-Idea as it is leading in a 2G user base in India. Goldman Sachs believes that Vodafone-Idea and Airtel users will slowly shift to other platforms.

"We see this as a move to target around 350 million feature phone users in India and gain market share from incumbents, particularly Vodafone Idea, which has 60 percent of its subscribers on 2G," said Axis Capital.

On the other hand, Goldman Sachs believes that Vodafone-Idea and Airtel users will slowly shift to Jio platforms. The agency also pointed out that only 30 percent of the revenue of Airtel and Vodafone-Idea comes from the feature phones.

Similarly, industry sources highlighted that Google is likely to focus on India, and that's why it has shared its plans to invest $10 billion.

Google And Jio Smartphone Might Disrupt The Market

After joining hands with Google, Reliance Jio has announced that both will develop 4G and 5G smartphones in the country. This means the company is planning to take on other establishing smartphones, such as Xiaomi, Realme, Oppo, Vivo, and OnePlus as there are high chances that it will make affordable smartphones.

Besides, anti-china sentiments are expected to help Reliance Jio and Google partnership. Moreover, one should not forget that Reliance Jio has also discussed its plan for launching 5G networks and technology, which also means that it can develop 5G smartphones too.