Corporate

Reliance Jio seen overtaking Vodafone Idea, Airtel to become India’s largest telecom firm by 2018-end

Reliance Jio’s *net revenue may have crossed* Bharti Airtel Ltd’s wireless revenue in India last quarter, according to analysts at Kotak Institutional Equities Research. If the Reliance Industries Ltd (RIL) unit maintains the momentum, then it may *emerge as the largest telecom company* as early as the end of 2018. We expect Bharti Airtel’s net India wireless revenues (reported gross wireless revenues less estimated gross interconnect revenues) to be around ₹87-88 billion for 2QFY19. Reliance Jio’s reported revenues of ₹92.4 billion are net of interconnect revenues as the company adjusts interconnect revenues in the interconnect costs line, analysts at Kotak Institutional Equities Research said in a note. If Bharti does not report a material beat on our estimated wireless revenues for the quarter, Reliance Jio has perhaps crossed Bharti on net India wireless revenues to become #2 after Vodafone Idea. If the current trends continue, Reliance Jio will likely become #1 on net revenues as early as 3QFY19E, the note said.

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