Analysts comments on telcos’ 1QFY23 performance

Jio gains at expense of Vi, and Airtel’s sequential growth rate narrows

BNP Paribas
“Jio gained RMS (43.3%) in 1Q, led by its industry-leading subscriber additions and average revenue per user (ARPU) growth, mostly at the expense of Vi, whose market share eroded to 20.6%.

Vi has managed to narrow the difference in revenue growth rate versus competition over the last few quarters, amid slowing 4G subscriber additions overall. For instance, Airtel’s sequential growth rate was ahead of Vi’s by more than 5% during 3Q21-1Q22, but its narrowed to a modest 1.8% in 1QFY23. Likewise, the gap between Vi and Jio’s revenue growth has tapered from a high 8.4% in 1QFY22 to 3% in 1QFY23.”

BofA Securities
“Part of the ARPU uplift (going forward) will come from telcos offering additional services to consumers leading to potentially more revenue sources, especially as prices are expected to remain low initially as focus will be on traction and coverage.”

CT Bureau