Key Points
Indias top two telecom operators Reliance Jio and Bharti Airtel are taking aggressive yet divergent strategies for growth, even as competition to acquire customers and increase consumption by them intensifies in the sector, analysts said.. While both are eyeing cash-strapped Vodafone Ideas customers in urban and rural areas, Airtel is taking the premiumisation route to push average revenue per user (ARPU) higher..
Unlike Bhartis clear premiumisation strategy, Jio also remains focused on further expanding its subscriber base, Citi analysts observed after Jio announced the launch of the Jio Bharat phone...
So, Airtel is looking to improve its 4G coverage in the rural areas while protecting its post-paid base, and Jio is trying to expand its post-paid base and at the same time making sure it does not lose out on its significant entry-level user base, said an analyst with a leading brokerage...
Jios new feature phone is also expected to help it retain the JioPhone user base that is at the end of the usage cycle, since the Rs 999 price is attractive for entry-level users looking for a new phone, and competitively priced tariffs while also upgrading them to 4G, said another analyst who did not want to be named...
For example, while Airtel has completed undertaking entry-level tariff hikes in all 22 circles (from Rs 99 to Rs 155) and is unlikely to roll them back even after Jios aggressive play for the entry level market with the Jio Bharat phone, Vodafone Idea may have to put the brakes on a similar activity it is currently undertaking...
You might be interested in
Reliance Jio adds active users at cost to Airtel, Vi’s 2G base
17, Nov, 23Reliance Jio emerged as the sole telco to gain active mobile users in August 2023, while Bharti Airtel and Vodafone Idea (Vi) experienced declines, as per telecom regulator data. Analysts noted Jio's success in attracting older rivals' 2G users through the popular Jio Bharat feature phone amidst rising demand. Jio expanded its active user base to 417 million with an addition of 1.2 million users, while Airtel and Vi dwindled to 376 million and 199 million, respectively, shedding 0.4 million and 2.9 million active users each.
'Jio, Airtel's revenue growth March to continue, Vi to lag'
07, Apr, 23They, though, expect Jio to add more subscribers than Airtel as the latter is likely to see some churn in the low-value user segment after sharply hiking base prepaid rates in all 22 circles in the fourth quarter, FY23.