New Delhi: Airtel, Jio gain revenue market share, VIL lags

New Delhi: Telecom majors Bharti and Jio further gained Revenue Market Share (RMS) while Vodafone Idea continued to lag on AGR basis, according to a report by EMkay Research.

VIL's AGR logged a healthy 5 per cent qoq growth, driven by growth in some of the key circles. However, RMS contracted further to 26.2 per cent (-102bps qoq).

Clarity on ongoing AGR issue is key, along with other operational targets like 4G coverage and network integration. AGR for the industry (including NLD revenues) rose 9 per cent qoq and 13 per cent yoy to Rs 363 bn in Q3FY20. This sequential rise was driven by healthy growth in the revenues of Bharti and Jio, sequential revenue growth by VIL after 13 quarters of losses, and a 21 per cent qoq rise in BSNL's revenues. VIL continued to lose market share with a 102bps contraction in RMS, the report said. For Jio, AGR, including NLD, grew 10 per cent qoq to Rs 129 bn in Q3FY20. RMS expanded 40 bps qoq and 554 bps yoy to 35.4 per cent. Jio continues to enjoy a strong position in B and C circles and commands number one position in 17 circles, increased from 16 circles in the last quarter.

NLD revenues jumped 72 per cent sequentially. Jio's faster-than-industry growth should continue to add RMS gains, although at a slower pace. Bharti Airtel (including TTSL) Inclusive of NLD, AGR rose 10 per cent/15 per cent qoq/yoy to Rs 117.5 bn. In addition, Compared with the previous quarters, revenue decline was recorded only in one circle (J&K) which can be largely attributable to the socio-political issues present there, the report said.

Vodafone-Idea (VIL), After 13 consecutive quarters of declines in AGR (inclusive of NLD), VIL finally posted a 5 per cent sequential gain, albeit reporting a 7 per cent yoy decline. AGR revenue, including NLD stood at Rs 95.2 bn, driven by growth in some of the key circles. RMS contracted 102 bps qoq and 542 bps yoy to 26.2 per cent. Of the 22 telecom circles, 6 circles reported yoy revenue declines.