Mumbai: Reliance Jio, the new 4G service launched on September 5 last year, is all set to snatch market share in telecom sector from incumbent three big players Bharti Airtel, Vodafone and Idea Cellular, according to a report on NDTV.
The news channel quoted a research report published by rating agency India Ratings that has revised India's telecom sector's outlook from 'stable' to 'negative'.
Apart from that, the poor profitability trend that these incumbent telecom operators showed in the aftermath of Jio's rise on telecom landscape will continue in financial year 2017-18, according to Ind-Ra report.
"The existing telcos would lose market share to RJio and suffer from poor profitability while their debt burden will increase due to spectrum and network related capex," it said.
At present country's largest telecom operator Bharti Airtel has over 250 million customers in its subscriber base. Vodafone that comes at number second after Airtel provides services to over 210 million customers. India's third largest telecom player Idea Cellular has some 180 million customers.
Reliance Jio rode its 180 days free 4G data, free voice calls and free roaming services to garner 100 million customer as of February 2017. Jio has revealed that around 108 million customers are now using its 4G services.
"Decline in data tariffs will pull down average revenue per user (ARPUs), despite higher volumes, while voice revenue remains at risk due to Reliance Jio's declared voice pricing strategy," Indian Ratings said.