Reliance Jio, Airtel likely increase combined revenue market share to 80%: Fitch

Mumbai: Rating agency Fitch estimates operating incomes of the telecom industry to increase by 40% in this fiscal end (FY20-21) compared to 25% in the previous one, backed by strong performance of Reliance Jio Infocomm (Jio) and Bharti Airtel, both of whom will continue to increase market share at the cost of Vodafone Idea (Vi).
The earnings before interest tax depreciation and amortisation (EBITDA) of the two rivals will be further propelled by higher tariffs, shift of customers to 4G and a data usage of 12GB-16GB per user per month as more subscribers work remotely, due to the pandemic.
“Jio and Bharti will likely increase their combined revenue market share to 80% (December 2020: around 75%), at the expense of third-placed Vodafone Idea, which will lose 50 million-70 million subscribers in the next 12 months,” said Fitch in a statement on Friday.