5G to help Jio, Airtel corner up to 85% of private telco revenue in 2024: Fitch Ratings

India's top two telcos Reliance Jio and Bharti Airtel are expected to corner cumulatively 80-85% of the revenue of private operators in 2024, continuing their run of gaining subscribers from smaller operators due to their 5G services, brokerage firm Fitch Ratings said Wednesday.

Teleco market leader Jio and second ranked Airtel, backed by their 5G services, have ramped up adding subscribers from rival cash-strapped operator Vodafone Idea, which is yet to finalise its plans of rolling out the next generation technology. The two are thus also adding to their revenue market shares at the cost of their loss-making rival.

At the end of the fiscal first quarter, ICICI Securities pegged Jio's revenue market share at 41.6%, Airtel's at 37.2% and Vodafone Idea's at 16.3%.


"The Indian telecom industry previously faced high regulatory risks and troubles, including a 2G spectrum award scam, cancellation of tainted spectrum allocation and a legal tangle of taxes related to the exact definition of adjusted gross revenue. The industry also dealt with a high tax rate and overpriced spectrum costs partially because auctions were designed to maximise government receipts," Fitch Ratings report said.

However, the government has since moved to alleviate the financial pain of the industry through various steps.