Bharti Airtel, Idea increase revenue market share; others slack
NEW DELHI: Bharti Airtel Ltd and Idea Cellular Ltd, India's largest and third-largest telecom service providers, respectively, are the only ones that have successfully increased revenue market share (RMS) over the last one year, data from the Telecom Regulatory Authority of India (Trai) reviewed by Mint showed. The remaining telcos have either lost revenue market share (RMS) or just about maintained it in the 12-month period ending December 2015.
The growth seems to be largely driven by the push in data services that many of the country's telcos have undertaken over the last few quarters, analysts said. Vodafone India Ltd, India's second largest telco, ended the 12-month period with a flat RMS of around 23%, gaining in 10 circles, losing in seven and consolidating its leadership position in Mumbai and Kolkata. Bharti's RMS gained 70 basis points over the same period last year to 31.6%, driven by a sharp increase in five markets (the biggest being in Andhra Pradesh, Karnataka and Mumbai) in the last quarter. Idea's RMS gained 40 basis points in the December quarter to 18.9%, gaining in 19 circles (the biggest in Punjab, Maharashtra and Andhra Pradesh).
Interestingly, the top three telcos accounted for 73.6% of RMS, or almost three quarters of the sector revenues.
"Combined RMS of the top three telcos increased by 80 basis points this quarter to 73.6% and was up 180 basis points (year-on-year), highlighting that quasi sector consolidation continues and implying incumbent telcos have a higher share in data revenues," Rajiv Sharma, telecom analyst with HSBC Securities and Capital Markets (India) Pvt. Ltd, wrote in a report released on Friday.
Analysts attributed the growth to the increased focus on deploying data services across the country, thereby increasing the revenues from data, at a time when the telcos are facing a lot of pressure on both voice and data tariffs. Bharti has expanded its 4G services in 15 circles across the country, while Idea is in the process of expanding to 10 from eight circles rolled out so far. Vodafone has completed its first phase with roll-outs across five circles of Delhi, Mumbai, Kolkata, Karnataka and Kerala.