Reliance Jio has posted Rs 1,809 crore or nearly $282 million as gross revenue for the quarter ending June, 2017 of financial year 2017-18, according to a TRAI report.

The Rs 1,809 crore revenue of Reliance Jio includes revenue from 4G services, Rs 667.2 crore from NLD services and Rs 28.65 crore from ILD services.

Reliance Jio, a Indian telecom company promoted by Mukesh Ambani, started offering paid services from April 2017 after introducing free voice and data services in September 2016 as part of its strategy to add 100 million subscribers to its all-India 4G network.

Reliance Jio has 36 percent share in India wireless broadband market in May 2017 — well ahead of Airtel that has 21 percent share. Airtel is now gearing up to launch a budget 4G smartphone for Rs 2,500 to take on Reliance Jio.

Jio garnered more than 50 percent share of 4G smartphones in the country after launching services in September 2016.

Reliance Jio has spent almost $25 billion over the last 4-5 years to build a 4G only network to take on Airtel, the market leader in terms of revenue and subs.

The aggressive entry strategy of Reliance Jio has helped the company to replace Bharti Airtel as the new market leader in wireless broadband subscribers, with 36 percent share of SIM cards as of May 2017, according to Goldman Sachs.

Goldman Sachs said wireless revenue growth for incumbents have dropped in double digits in the last two quarters due to the pricing strategy of Jio.

In this declining market, Bharti Airtel has been increasing its revenue market share, which at 34.1 percent (as of March 2017 – Exhibit 5) is at an all-time high.

Elara Capital in a report said that Bharti Airtel and Vodafone together managed to add 5.16 million broadband subscribers, despite Jio extending a new 3-month subscription package of INR 309 for 84 days of 1GB of broadband data per day.

Reliance Jio’s VLR data has shown a downward trend from October 2016-April 2017, suggesting a large number of its customers which tried the service in the initial free period from launch have discontinued using its services.

Baburajan K