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New Delhi: India’s top two telcos, Reliance Jio<\/a> and Bharti Airtel<\/a> reported sequential growth in their adjusted gross revenue AGR (including national long distance or NLD revenue<\/a>) in the fourth quarter, FY23, at the expense of loss-making Vodafone Idea<\/a> (Vi), which reported a fall, latest telco financial data put out by the sector regulator showed.
Jio and Airtel reported a 1.7% and 1.3% sequential rises in AGR (including NLD revenue) to Rs 23,300 crore and Rs 20,400 crore respectively in the January-March quarter. By contrast, Vi’s AGR fell 1.1% on-quarter to Rs 9,300 crore, underlining the latter’s continuing inability to compete effectively with its two financially-stronger rivals.
“Jio was the biggest gainer in 4QFY23, with its AGR (including NLD) rising 1.7% qoq (versus 1.3% qoq for Bharti and (-)1.1% qoq for Vi), largely on higher net adds,” Kotak Institutional Equities said, analysing operator financial data collated by the Telecom Regulatory Authority of India (Trai<\/a>).
Jio also extended its lead over Airtel and Vi on the revenue market share (RMS<\/a>) front in the March quarter. Trai data showed that the Mukesh Ambani-led telco cornered more RMS than Airtel in January-March. Jio’s RMS increased 15 basis points (bps) sequentially to 41% while Airtel’s was almost unchanged at 35.9%, partly weighed down by the sharp tariff hikes taken in its base prepaid rates.
Vi continued to lose RMS in the March quarter – down 40 bps sequentially to 16.36% -- primarily due to big losses in the metros where its rivals have launched 5G services. Cash-strapped Vi is yet to announce a timeline for its 5G services launch, while Jio and Airtel are targeting countrywide 5G coverage by December.
The RMS is a measure of overall telecom market leadership. A basis point, in turn, is a hundredth of a percentage point.
Kotak said Jio’s RMS gains in 4QFY23 were largely broadbased, with large gains in A and B circles, while Airtel’s RMS growth trend slowed with declines in the metros and B circles, likely on the sharp rise in minimum recharge packs.
Airtel’s 2G mobile services have become costlier across its 22 circles after the telco raised base prepaid rates nationally some months ago.
Kotak added that Vi’s RMS was still sharply down in the metros vs peers in the fiscal fourth quarter.
Trai data showed that overall March quarter sectoral AGR (including NLD revenue) increased a modest 1.3% sequentially to Rs 56,900 crore amid lack of headline tariff hikes. The last round of industry-wide tariff hikes happened in November\/December 2021.
“Rising competitive intensity may delay tariff hikes to after the general elections, but could result in accelerated market share gains for Airtel and Jio at Vi’s expense,” Kotak said.
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