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Home / News / Business News / Reliance Jio beats Vodafone to become India's largest telecom operator
Business

Reliance Jio beats Vodafone to become India's largest telecom operator

Reliance Jio beats Vodafone to become India's largest telecom operator
Written by Mudit Dube
Jul 27, 2019, 07:04 pm 2 min read
Reliance Jio beats Vodafone to become India's largest telecom operator

In a remarkable achievement, Reliance Jio has beaten Vodafone Idea to become the largest telecom operator in India with a subscriber base of 331.3 million. The shift in rankings came to light when Vodafone Idea on Friday reported a decline in its customer base from 334.1 million to 320 million in the quarter ending June this year. Here's more on this development.

Reason
Vodafone-Idea customer base falls as it sheds low-spending customers

Vodafone-Idea said that its subscriber base declined by 14.1 million quarter-on-quarter "due to customer churn following the introduction of 'service validity vouchers' in the prior quarters." However, the operator noted that its high ARPU (average revenue per user) remained stable. Vodafone also said that it has undertaken "certain initiatives to offer a better value proposition to low ARPU customers and to reduce low-end churn."

Data
Jio had already beaten Airtel to take the second place

According to TRAI numbers, at the end of May 2019, Jio surpassed Airtel to become the second-largest mobile operator in India with 322.9 million users or 27.80% market share as against the latter's 320.38 million users or 27.6% market hold.

Rankings
Vodafone may have slipped to number 3 spot?

While Jio leads the pack with its fast-growing customer base, Airtel and Vodafone seem to be in a close battle for the number two spot. Presently, we don't have the latest numbers from Airtel. However, if its consumer strength from May has not declined, the company will take the second place followed by Vodafone which continues to see a sharp decline in consumer strength.

The equation
Fall of Vodafone, Rise of Jio

Vodafone-Idea had emerged as the largest telecom operator with over 400 million subscribers after Vodafone India and Idea Cellular's merger. However, the consolidated entity continues to lose customers as it sheds millions who didn't subscribe to its minimum recharge strategy. On the other hand, Reliance Jio continues to net more and more users with lower tariff plans, better internet speed, and other added benefits.

Twitter Post
The chart says it all

Blitzkrieg Destruction of Competition

Don’t think that a newcomer telco ever beat incumbents in under 3 years in any telecom market of the world!

Money, Muscle and Innovation

And Jio is No 1 pic.twitter.com/egNlVCHXDH

— Rajesh Sawhney (@rajeshsawhney) July 27, 2019
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Mudit Dube
Mudit Dube
Twitter
Mudit Dube is a technology and automobile editor at NewsBytes. He also manages the in-house news writing software, YANTRA. With an experience of nearly five years, his work focuses on daily news trends, explainers, reviews, and developing technologies. He has a postgraduate diploma in Journalism from the Asian College of Journalism and has previously worked with NewsX, a 24-hour english news channel.
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