Jio captures more RMS than Airtel in Q4 FY23, says TRAI data

Reliance Jio captured more revenue market share (RMS) than Bharti Airtel in the fourth quarter of fiscal year (FY) 2023, based on Telecom Regulatory Authority of India (TRAI) data. According to experts, Jio’s lead was due to the gains in the country’s metro and rural mobile markets. The company’s adjusted gross RMS rose 13 basis points (bps) sequentially to 41.7 per cent while Airtel’s remained stagnant at 36.5 per cent, in the March quarter of fiscal year 2023, due to the sharp hikes in its base prepaid rates. 

Vodafone Idea Limited (Vi) meanwhile continued to incur RMS loss in the fourth quarter due to the underperformance in its leadership circles. Vi’s RMS went down 42 bps sequentially to 16.6 per cent. RMS measures the overall telecom market leadership and a basis point is 0.01 per cent. 

Jio saw market share gains in most of the circles, accounting for around 20 bp sequential rises in metro A and B circles, whereas Airtel’s revenue share gains in Metro A circles were lower at 10 bp and fell 20 bp sequentially in B circles. Airtel’s fall in RMS in B circles contributed to the increase in base level tariffs of its 2G packs, as a major loss was reported in the Uttar Pradesh West/East circles by 180/90 bp quarter on quarter. The 2G rates for Airtel have become more expensive across its 22 circles. 

According to ICICI Securities, the fall in Vi’s RMS in leadership circles in Q4FY23 was attributed to the sequential fall in key markets like Andhra Pradesh (by 3 per cent on quarter) and UP-East (by 6.2 per cent). Vi would require external funding to improve its 4G coverage while also rolling out 5G services, to counter its rivals.

The TRAI data showed the sequential growth for Jio and Airtel on the adjusted gross revenue (AGR) front in the March quarter, whereas Vi registered a sequential fall. Jio and Airtel reported a 1.7 per cent and 1.3 per cent sequential rise in AGR which amounted to Rs 233 billion and Rs 204 billion respectively, in the fiscal fourth quarter. On the other hand, Vi’s AGR fell 1.1 per cent on quarter to Rs 93 billion. The overall growth in the March quarter sectoral AGR rose 1.4 per cent sequentially to Rs 560 billion despite the absence of tariff hikes in the past 12 months, stated ICICI Securities. The industrial average revenue per user grew 1.5 per cent sequentially to Rs 165 in Q4FY23.