Jio likely to remain market leader for next 2 years despite tariff hike, say analysts

Kolkata: Reliance Jio Infocomm is likely to continue leading India’s telecom market over next two years regardless of the recent tariff hikes, analysts said, though the pace of its subscriber additions may slow.

“Jio’s dominant position in terms of market share growth and data usage will sustain comfortably for the next 18-24 months, given its superior data speeds and 4G network coverage, even post change in tariffs,” Centrum Institutional Research said in a note. The brokerage expects Jio’s pace of customer additions to slow, following the recent increase in tariffs. Centrum estimates a “more moderate” subscriber growth of 5.5 million to 6.5 million users a month in FY22 compared with 10 million in FY19 and 8 million to 8.5 million currently.