Reliance Jio is a company which has mastered the art of churning out a profit. They have grown substantially over the years and have become one of the biggest telecom companies in India. Their strategies have been plain and simple yet effective amongst all of them. Since the day Mukesh Ambani announced its free internet for all of India, Jio has only improved. They have netted profits and only profits while other telecom companies have piled on their losses.
Reliance Jio has had their fair share of losses in the first couple of years. After reaching out to the remotest places in India and giving out free sim cards they had established their networks. The prices of prepaid plans of Jio were extremely low when they launched their paid plans. No company could compete with them and this was the reason many of them started incurring losses. Airtel also started to lose market share because Jio came in with the intention to kill and nothing else.
The Indian telecom giant Jio incurred its first profit in the Financial Year 18. In every quarter after that, they have only incurred profits and nothing else. Jio has now received profits for the fifth quarter in a row as the latest Financial Year 19 quarter numbers are out. It looks like Vodafone Idea and Bharti Airtel are going to post losses after a long time. Vodafone Idea were the leaders in the telecom industry in India with Airtel being the second largest now that has changed.
The revenue numbers speak differently to that from previous years. Bharti Airtel’s revenue is approximated at INR 20,428-20,447 crore. Reliance Jio’s revenue for the December quarter is supposed to be INR 10,327 crore. ICICI Securities have penned down a 49% year on the jump for Reliance Jio and by this rate, it will overtake Vodafone Idea in the next quarter and Bharti Airtel in the next couple of quarters.
VIL (Vodafone Idea) on the other hand has an estimated revenue of about INR 11,000 crore. In spite of that, their losses stand at INR 4001.7 crore which are lower than the July-September quarter. However, Bharti Airtel has posted a loss for the first time in 16 years. Their losses are reported to range between INR 649 crore to INR 1,141 crore. This is bad news for Airtel, however, their minimum recharge plans are yet to kick in some revenue. But, the shadowed side of that strategy is that there will be a lot of people leaving Airtel.
That said, Jio might surpass Airtel’s India mobile revenue which is estimated to be INR 9997 – 10148 crores while Jio’s revenue, as told, is in the range of INR 10,327 crore. This is huge for Jio has it is going to topple Airtel and Vodafone Idea in one quarter. That said, Jio is winning all around and it is without a doubt going to be India’s largest telecom company. With Jio working with Apple and other smartphone makers to enter the smartphone business is also something analysts will look at. The year 2019 could be Reliance Jio’s to conquer as VIL and Airtel will look to stop their ships from drowning.
– Unmesh Phule