Reliance Jio Infocomm becomes market leader on ‘AGR’ basis

Our Bureau Mumbai | Updated on August 27, 2019

Reliance Jio Infocomm (RJio), a subsidiary of Mukesh Ambani-controlled Reliance Industries (RIL), has reported a marketshare in terms of 31.7 per cent Adjusted Gross Revenue (AGR) for the quarter ended June 30.

In June, RJio had emerged as the largest operator with a subscriber base of 331 million.

Bharti Airtel ranked second with a 30 per cent marketshare, followed by Vodafone Idea with a 28.1 per cent share, according to Telecom Regulatory Authority of India (TRAI) data.

“RJio’s AGR (including National Long Distance) rose 9 per cent YoY to ₹10,900 crore, and finally became the number one operator,” said brokerage firm ICICI Securities, which analysed the data.

It added, “RJio’s AGR grew strong at 12.3 per cent in A circles and in metros grew 5.1 per cent. AGR growth in B and C circles was 8.6 per cent and 9.8 per cent, respectively. Its ARPU (based on AGR) rose 0.2 per cent on a quarter-on-quarter basis to ₹114.”

In comparison, RJio’s AGR was at 31.6 per cent in the previous fourth quarter and 22.4 per cent in the comparable previous year-ago quarter. AGR is defined as gross revenue minus access and pass-through charges. ARPU, or Average Revenue Per User, is a financial metric for a telecom firm.

Bharti Airtel’s AGR (including NLD) stood at ₹10,300 crore during the quarter under review.

The New Delhi-based company had posted a 27.2 per cent market share in the fourth quarter of FY19, and 31.7 per cent in the comparable year-ago quarter. “Bharti is gaining higher incremental market share in its traditionally weaker 1,800 MHz circles where revenue AGR grew 17.9 per cent YoY to ₹2,400 crore. These were leadership circles of Vodafone and Idea Cellular. Bharti’s AGR grew 8.1 per cent in its traditional 900MHz leadership circles,” said the brokerage firm.

Vodafone Idea’s AGR stood at ₹9,600 crore. The company posted a 28.1 per cent AGR market share in the first quarter of this fiscal, compared with 34.7 per cent in the year-ago period.

It posted an AGR market share of 32.1 per cent in fourth quarter of last financial year.

Published on August 27, 2019

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