Reliance Jio Will Remain Market Leader For Next Two Years: Report

Reliance Jio is currently leading the telecom industry and it is likely to continue to lead the market for the next two years. However, there are chances that subscriber addition will come down.

"Jio's dominant position in terms of market share growth and data usage will sustain comfortably for the next 18-24 months, given its superior data speeds and 4G network coverage even post change in tariffs," Centrum Institutional Research note said in a note, as reported by Economic Times. However, the research firm believes that the pace which Jio's is adding customer will be slow, due to a recent tariff hike. The analyst also believes that the first estimate that the subscriber growth comes down to 5.5 million to 6.5 million users in FY22.

"Jio's 28-day and 84-day prepaid plans - offering 1.5 GB of data a day - are 20 percent and 7 percent cheaper than Bharti Airtel and Vodafone Idea's latest comparable offerings," Brokerage CLSA was quoted by the newspaper. In fact, Centrum backed this statement and said that Jio's newly launched plans are most attractive.

Furthermore, analysts expect that both Airtel and Vodafone will increase the prices by FY22. For the unaware, at present, Reliance Jio is adding eight million subscribers on a monthly basis. To recall, all private players ( Airtel, Vodafone Idea, and Reliance Jio) have introduced new tariff plans by 40 percent.

But both Vodafone Idea and Airtel have recently launched new plans for their prepaid customers. The companies are offering unlimited calling to all networks. On the other hand, Jio's plans are charging 6 paise FUP per minute for making calls to other networks. But still, Jio's 84-day plan is 7 percent is cheaper than Bharti Airtel and Vodafone Idea plans.