NEW DELHI: Vodafone and Idea
Cellular are chipping away Bharti Airtel's dominance in the mobile space and
have improved their revenue market shares in FY12 at the expense of the
country's top two mobile operators by subscribers, according to data released by
sector regulator Trai.
An analysis of Trai's recent report on mobile operators' revenues shows that Bharti Airtel, Reliance Communications (RCOM) and BSNL have recorded a 1.1%, 1.5% and 1.6% drop, respectively, in their revenue market share in FY12. These companies have recorded a decline of over 100 basis points on this front for the second consecutive year.
One basis point is 0.01%.
Bharti Airtel, the country's largest operator by sales and customers, commanded 32.5% of the sector's revenues in the first quarter of 2010-11 financial year before sliding to 30.1% for the year-ended March 2011 and declining further to 29.1% in the subsequent year.
Trai data also reveals that both Bharti and RCOM, the country's second largest operator by customers, have lost revenue market share for seven consecutive quarters. Analysts say this is an indicator of how attractive marketing and customer retention campaigns of their primary competitors - Idea Cellular and Vodafone - have paid rich dividends.
During the same period, Vodafone and Idea Cellular's revenue market share rose by 120 and 140 basis points, respectively. Uninor, majority owned by Norway's Telenor, has also made significant gains, registering a 110 basis points jump in its revenue market share (but from a much lower base) in FY12.
"Despite operating under hyper-competitive market conditions and a period of uncertainty, Idea grew its revenue market share (RMS) by 1.4 percentage points year-on-year, closing FY12 at 15% RMS. This is the third consecutive year of the company's over 1 percentage point growth in RMS, an unparalled phenomenon in the Indian telecom sector," the company's spokesperson said in an email communication to media last week.
According to PwC India's executive director and telecom leader Mohammad Chowdhury, Idea Cellular has performed strongly in the mid-tier cities. "In the four metros, it has a revenue market share of only 7%. But when it comes to the mid-tier cities, it accounts for a quarter of the sales and has been extremely successful in grabbing business from both Vodafone and Airtel. If the current trend continues over the next three years, Idea will overtake Vodafone to take the second slot in revenues," he said.
An analysis of Trai's recent report on mobile operators' revenues shows that Bharti Airtel, Reliance Communications (RCOM) and BSNL have recorded a 1.1%, 1.5% and 1.6% drop, respectively, in their revenue market share in FY12. These companies have recorded a decline of over 100 basis points on this front for the second consecutive year.
One basis point is 0.01%.
Bharti Airtel, the country's largest operator by sales and customers, commanded 32.5% of the sector's revenues in the first quarter of 2010-11 financial year before sliding to 30.1% for the year-ended March 2011 and declining further to 29.1% in the subsequent year.
Trai data also reveals that both Bharti and RCOM, the country's second largest operator by customers, have lost revenue market share for seven consecutive quarters. Analysts say this is an indicator of how attractive marketing and customer retention campaigns of their primary competitors - Idea Cellular and Vodafone - have paid rich dividends.
During the same period, Vodafone and Idea Cellular's revenue market share rose by 120 and 140 basis points, respectively. Uninor, majority owned by Norway's Telenor, has also made significant gains, registering a 110 basis points jump in its revenue market share (but from a much lower base) in FY12.
"Despite operating under hyper-competitive market conditions and a period of uncertainty, Idea grew its revenue market share (RMS) by 1.4 percentage points year-on-year, closing FY12 at 15% RMS. This is the third consecutive year of the company's over 1 percentage point growth in RMS, an unparalled phenomenon in the Indian telecom sector," the company's spokesperson said in an email communication to media last week.
According to PwC India's executive director and telecom leader Mohammad Chowdhury, Idea Cellular has performed strongly in the mid-tier cities. "In the four metros, it has a revenue market share of only 7%. But when it comes to the mid-tier cities, it accounts for a quarter of the sales and has been extremely successful in grabbing business from both Vodafone and Airtel. If the current trend continues over the next three years, Idea will overtake Vodafone to take the second slot in revenues," he said.
 Source : http://economictimes.indiatimes.com/news/news-by-industry/telecom/vodafone-idea-eating-into-bharti-airtels-revenue-market-share/articleshow/14397297.cms |
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