Airtel, Vodafone, and Idea Cellular- The 3 biggest telecom players in India have unsurprisingly have managed to generate a combined revenue share of 71.3% of the total revenue for financial quarter that ended in June, 2014. They alone account for 56.5% of total subscribers in India at the end of Q2, 2014, according to the report by HSBC Securities and Capital Markets (India) Pvt. Ltd.
|Telecom Operator||Subscriber Market Share (%)||Revenue Market Share (%)|
|BSNL + MTNL||10.3||5.5|
This report has left the experts worried about the fate of any newcomer & small telecom operators in the country.
Tata Teleservices, Aircel, and Uninor also reported gains in Revenue Market Share (RMS).
On the other hand, PSU telco companies- BSNL and MTNL noticed the maximum decline in both RMS and Subscriber market share with Reliance Communications following them closely. Vodafone also noticed a slight drop in revenue as compared to Q1, 2014.
It also suggests that in future, the revenue will be more of a function of data usage than voice calling.
This will further pose yet another hurdle towards the entry of new players as they’ll need more cash for building high-speed data infrastructure. There is no running from the fact that high-speed data brings the maximum share of revenue for these companies. The companies investing in expanding their coverage and providing faster data transfers speed will have the upper hand over the others in near future.
We would love to see how much market share does the Reliance Jio Infomm snatches from these telco companies once it launches its TD-LTE 4G services in 2015.
What are your thoughts about this?