Business

With rural push, Jio becomes second largest telecom operator

Photo for representation.

Photo for representation.  

Reliance Jio bypassed Bharti Airtel in wireless subscriber base to become the second largest telecom operator in India in May 2019. Jio is also bridging the gap with market leader Vodafone Idea, which experienced massive outflows recently. An increase in its rural base has helped Jio’s recent surge.

Snakes & ladders

Graph shows change in wireless subscriber base from October 2009 to May 2019. In this period the total base increased from 49 crore to 116 crore while the number of operators shrunk to six from 10. After Jio’s arrival, many customers have ported out of its competitors.

image/svg+xml After Jio's introduction, Vodafone Idea and Airtel continued to grow for two years... ...but in the last sevem months, their customer bases have recorded significant declines 50 40 30 20 10 Wireless subscribers (crore) Oct. '10 Oct. '12 Oct. '14 Oct. '16 Oct. '18 May '19 Vodafone IDEA Airtel BSNL+MTNL Tata Reliance Jio
 

Rural push

Graph shows the percentage change in wireless customers between May 2018 and May 2019. Jio’s highest increase in customer base occurred in rural areas where other operators experienced steep declines (except for BSNL/MTNL).

image/svg+xml 15 10 5 0 -5 -10 % change (May ‘18 to may ‘19) Jio Airtel Vodafone idea BSNL/MTNL Rural Total Urban BSNL/MTNL's share neither grew, nor shrank in this period
 

Among telecom circles

Tables show the percentage change in customer base between May 2018 and May 2019 among telecom circles. Rajasthan experienced the highest increase in Jio’s customer base and Kerala the lowest. The customer bases of Vodafone Idea and Airtel put together fell the steepest in Gujarat.

image/svg+xml Mumbai 36.7 Delhi 36.3 Kerala 30.7 Circle % Change Rajasthan 85.8 M.P. 85.5 West Bengal 75.4 Circle % Change Mumbai 11.5 Delhi 4.5 Kerala 2.6 Maharashtra -29.6 Odisha -34.7 Gujarat -36.6 Jio Vodafone Idea & Airtel
 

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Printable version | Feb 20, 2020 11:58:19 AM | https://www.thehindu.com/business/rural-push-helps-jio-become-second-largest/article28688187.ece

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