Revenue flying high: Bharti Airtel’s revenue market share(RMS) has escalated the most in the first quarter of the year as compared to the other local telecom operators, revenue market share(RMS) has escalated the most in the first quarter of the year as compared to the other local telecom operators, analysts said. Reserves in data and volume progression in voice helped the market leader merge its lead over competitors Vodafone India and Idea Cellular.
Bharti Airtel’s Revenue Market Share soaring the highest in Q1 2016
The company’s RMS rose 1.3 percentage point from last year to 32.7% in the past quarter, brokerage BNP Paribas said in a report.Bordering opponent Vodafone India showed a trivial growth to 23.3%, while at third ranked Idea Cellular, falling down to 19.2%. Analysts mentioned while the fiscal quarter through September is historically known to be slow for industry, good monsoons, plentiful rains this year might just boost the agriculture-led rural economy. Hence the increase in consumer spending, might give the required aid to demand in turn making the second half of the fiscal to be better than the first.
The top three networks fighting for the first place
“Bharti’s market share gains have accelerated with higher investments in data network,” BNP said. At the same time, a sharp price surge by Idea, its average revenue per minute rose to 8% in the last two quarters versus stable realization for Airtel which aided Airtel’s voice volume share gain, it added.
Idea stated a serial decline in RMS in places where Airtel and Vodafone are leaders like Mumbai, Delhi, Kolkata and Karnataka, as the Aditya Birla Group company elevated prices, in spite of being a weaker operator and as it lacked satisfactory range to compete against leaders in some of these data markets, BNP said.
Though Idea Cellular continued to inform RMS gains in positions where it is at the top most station, such as Kerala, Maharashtra and Madhya Pradesh. Vodafone India RMS remains to maintain a stable ground at around 23% for the past three years. Airtel reported revenue progress in all circles except Mumbai where it declined 0.3% on quarter. “Among the top three, only Vodafone reported revenue growth in the Mumbai circle”, brokerage Emkay said.
The largest revenue contributing circle for Airtel, with an expansion of 3.0% was outlined in Karnataka. “Punjab, Maharashtra, Haryana, Gujarat and Kolkata circles recorded highest on-quarter growth for the market leader”, Emkay added.
“The telecom industry adjusted gross revenue growth in the first quarter slowed to 6.2% from a year earlier, compared with 10.9% in the fourth quarter of the last fiscal year”, BNP said.