Vodafone, Idea narrowing Bharti's lead
26-06-2012
Attractive marketing and customer retention campaigns pay off
Vodafone and Idea Cellular are chipping away at Bharti Airtel's dominance of the mobile space and improved their revenue shares in FY12 by 1.2% and 1.4% respectively, according to TRAI data. In contrast, the revenue shares of Bharti Airtel, Reliance Communications and BSNL fell 1.1%, 1.5% and 1.6%.
Bharti Airtel, India's largest telecom operator, had a 32.5% revenue share in 1Q 2010-11. The figure fell to 30.1% by the end of March 2011, declining further to 29.1% by end-March 2012
Both Bharti and Reliance, 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 the attractive marketing and customer retention campaigns of their primary competitors - Idea Cellular and Vodafone - have paid rich dividends.
"Despite operating under hyper-competitive market conditions and a period of uncertainty, Idea grew its revenue market shareby 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," a company's spokesperson said
According to PwC India's executive director 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.
From Economic Times
Vodafone and Idea Cellular are chipping away at Bharti Airtel's dominance of the mobile space and improved their revenue shares in FY12 by 1.2% and 1.4% respectively, according to TRAI data. In contrast, the revenue shares of Bharti Airtel, Reliance Communications and BSNL fell 1.1%, 1.5% and 1.6%.
Bharti Airtel, India's largest telecom operator, had a 32.5% revenue share in 1Q 2010-11. The figure fell to 30.1% by the end of March 2011, declining further to 29.1% by end-March 2012
Both Bharti and Reliance, 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 the attractive marketing and customer retention campaigns of their primary competitors - Idea Cellular and Vodafone - have paid rich dividends.
"Despite operating under hyper-competitive market conditions and a period of uncertainty, Idea grew its revenue market shareby 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," a company's spokesperson said
According to PwC India's executive director 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.
From Economic Times
Custom reports on Indian telecom
Indiatel provides complete anlaysis of India's telecom, telecom equipment and allied businesses.
We can do customized reports for you on topics of your choice. Our more standard sector reports include:
India's mobile telecom services business
India's international bandwidth business
India's GSM and CDMA handset business
India's international long-distance telecom business
India's cable TV equipment market and competition
For more India titles click here...