Reliance jio

Reliance Jio Infocomm Limited, popularly known as Jio, is an Indian mobile network operator that is owned by
Reliance Industries and is headquartered in Mumbai, Maharashtra. It operates a national Long-Term Evolution
(LTE) network technology with coverage across all 22 telecom circles. Jio does not offer 2G service or 3G
service, and instead uses Voice over LTE (VoLTE) to provide voice service on the company’s network. The
launch of Reliance Jio has caused a revolution in the Indian telecom industry on a level never seen before. Now,
Jio claims to be the world’s largest data network, based on mobile data consumption. Further, Jio also disrupted
other industries with the likes of Jio TV, Jio Phones with Jio Phone 3, Jio Fiber etc.

HISTORY-
Jio was launched on December 27, 2015 (the eve of the 83rd anniversary of Reliance Industries founder Dhirubhai Ambani),
in beta for partners and employees, and was released to the public on September 5, 2016. rice field. As of January 31, 2019,
it is India's third largest mobile network operator and the ninth largest mobile network operator in the world with over
289.44 million subscribers.

The company was registered as Reliance JioInfocomm Limited in Ahmedabad, Gujarat on February 15, 2007. In June 2010,
Reliance Industries (RIL) purchased a dominant 95% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800.
Although unlisted, IBSL was the only company to win a broadband spectrum in all 22 counties of India at a 4G auction
earlier this year.

Reliance Jio Infocomm Limited (commonly known as Jio) is an Indian mobile network operator owned by Reliance
Industries and headquartered in Mumbai, Maharashtra. It operates nationwide LongTerm Evolution (LTE) network
technology that covers all 22 communication lines. Jio does not offer 2G or 3G services, but instead uses Voice over LTE
(VoLTE) to provide voice services over the corporate network. The launch of Reliance Jio has revolutionized the Indian
telecommunications industry unprecedentedly. Currently, Jio claims to be the world's largest data network based on the use
of mobile data. In addition, Jio has confused other industries with Jio TV, Jio Phone 3, Jio Fiber and more.

Jio was launched on December 27, 2015 (the eve of the 83rd anniversary of Reliance Industries founder Dhirubhai
Ambani), in beta for partners and employees, and was released to the public on September 5, 2016. rice field. As of January
31, 2019, it is India's third largest mobile network operator and the ninth largest mobile network operator in the world with
over 289.44 million subscribers.

The company was registered as Reliance JioInfocomm Limited in Ahmedabad, Gujarat on February 15, 2007. In June 2010,
Reliance Industries (RIL) purchased a dominant 95% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800.
Although unlisted, IBSL was the only company to win a broadband spectrum in all 22 counties of India at a 4G auction
earlier this year. Infotel Broadband Services Limited, which later survived as RIL's telecommunications subsidiary, was
renamed to Reliance Jio Infocomm Limited (RJIL) in January 2013. Four months later, in October, a spokeswoman for the
company said the launch was postponed to 2016-2017.

Airtel
Bharti Airtel Limited is a leading global telecommunications company with operations in 18 countries across Asia and
Africa. Headquartered in New Delhi India Bharti Airtel ranks amongst the top 3 mobile service providers globally in
terms of subscribers. The company offers an integrated suite of telecom solutions to its enterprise customers in
addition to providing long distance connectivity both nationally and internationally. The Company also offers Digital
TV and IPTV Services. All these services are rendered under a unified brand 'airtel' either directly or through
subsidiary companies. The company operates in four strategic business units namely Mobile Telemedia Enterprise and
Digital TV. The mobile business offers services in India Sri Lanka and Bangladesh. The Telemedia business provides
broadband IPTV and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV
services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and
national and international long- distance services to telcos .
HISTORY-
Bharti Airtel was founded by Sunil Bharti Mittal on July 7, 1995 and is headquartered in New Delhi, India.

Sunil Bharti Mittal founded the Bharti Group. In 1983, Mittal signed a contract with Siemens of Germany to manufacture a push-
button telephone model for the Indian market. In 1986, Mittal founded Bharti Telecom Limited (BTL), which laid the foundation
for Bharti Enterprises by providing India's first push-button telephone. By the early 1990s, Sunil Mittal had also launched the
country's first fax machine and cordless phone. In 1992, Mittal won a contract to set up a mobile network in Delhi. In 1995, Mittal
integrated its mobile phone business as Bharti Tele-Ventures and launched its service in Delhi. In 1996, the mobile phone service
was extended to Himachal Pradesh. In 1999, Bharti Enterprises took control of JT Holdings and expanded its mobile operator
business to Karnataka and Andhra Pradesh. In 2000, Bharti gained control of Skycell Communications in Chennai. In 2001, the
company took control of Kolkata's Spice Cell. Bharti Enterprises was published in 2002 and was listed on the Bombay Stock
Exchange and the National Stock Exchange of India. In 2003, the mobile business was renamed to a single Airtel brand. In 2004,
Balti gained control of Hexacom and entered Rajasthan. In 2005, Balti expanded his network to Andaman and Nicobar. This
expansion has made it possible to provide voice services throughout India. In 2009, Airtel launched the first international mobile
network in Sri Lanka. In 2010, Airtel acquired Kuwait-based Zain Telecom's African operations. In March 2012, Airtel launched its
mobile business in Rwanda.

Airtel launched Hello Tunes, the Caller Ring Back Tone Service (CRBT) in July 2004, and became the first operator in India.
Airtel's theme song, Rahman, composed by A.R., was the most popular song of the year.

In fiscal year 2009, Bharti negotiated with strategic partner Alcatel-Lucent to manage the network infrastructure of the telemedia
business. On May 31, 2012, Bharti Airtel signed a three-year contract with Alcatel-Lucent for the nationwide rollout of Internet
Protocol access networks (mobile backhaul). This helps consumers access the internet faster and surf the internet with high quality
mobile phones.

On February 26, 2013, Airtel announced that it has launched Ericsson's Mobile Broadband Billing (MBC) solution, completely
modernizing its prepaid service for Indian subscribers. As part of the deal, Ericsson's multi-service MBC suite enables personalized
profile-based data plans for prepaid customers. Prepaid customers can customize their mobile, terrestrial and broadband data plans
by bundling to multiple domains (2G, 3G, 4G / LTE, Wi-Fi). It also offers flexible multi-service billing in geo-redundancy mode,
making Airtel the first operator to implement such massive geo-redundancy.

COMPARATIVE ANALYSIS OF JIO AND AIRTEL

 Q4FY21 Results-
BHARTI AIRTEL
 Revenue from Operations of Airtel has gone up by 12% YoY from Rs. 23,019 Cr. in
Q4FY20 to Rs. 25,747 Cr. in Q4FY21. Sequentially, revenue has gone down by 3%
from Rs. 26,518 Cr. in Q3FY21.
 EBITDA of the company stands at Rs. 12,583 Cr. in the quarter ended 31 st March
2021. The same has increased by 29% YoY and 3.3% QoQ. EBITDA of the company
in Q4FY20 & Q3FY21 was Rs. 9,761 Cr. and 12,178 Cr. respectively.
 Just like growth in EBITDA of the company, the EBITDA margin of Airtel stood at
48.9% in Q4FY21, up by 6.5% YoY from 42.4% in Q4FY20. Quarter-on-Quarter,
EBITDA Margin was up by 3% from 45.9% in Q3FY21. EBITDA Margin at 48.9% is
quite strong and comparatively better than Reliance Jio.
  Further, the EBIT (Earnings Before Interest & Tax) of the company has gone up by a
massive 75.5% YoY to Rs. 5,048 Cr. in Q4FY21 from Rs. 2,876 Cr. in Q4FY20.
Sequentially, growth in EBIT is 8% from Rs. 4,665 Cr. in Q3FY21.
 Despite a great jump in EBIT, the EBIT Margin of Airtel is at 19.6% in Q4FY21 up by
7.1% YoY from 12.5% in Q4FY20. Other Costs like AGR Dues, etc. have greatly
affected the EBIT Margins of the company.
 Moving ahead to the Finance Cost of the company, Bharti Airtel has a higher Finance
Cost than its closest peer i.e., of 3,861 Cr. as of March 2021. Here, the positive
thing for the company is the reduction in the Finance Cost of 7% YoY and 3% QoQ
from Rs. 4,147 Cr. in Q4FY20 and Rs. 3,972 Cr. in Q3FY21.
 In terms of Profit Before Tax (PBT), Airtel is finally able to go on the profitability side
on a year-on-year basis. Loss of the company on Q4FY20 was Rs. 469 Cr., which
now stands at Rs. 1,581 in the quarter ended 31st March 2021. Sequentially, it has
grown by a significant 167% from Rs. 592 Cr.
 Net Profit (After Exceptional Items) for the Q4FY21 was Rs. 759 Cr. for the company.
Previous year in the same quarter, there was a loss of Rs. 5,237 Cr. While QoQ has
come down by 11% from Rs. 854 Cr. in Q3FY21.

RELIANCE JIO

 Reliance Jio has reported a downfall of 4% in its revenue from Rs. 19,475 Cr. in
Q3FY21 to Rs. 18,278 Cr. in Q4FY21.
 EBITDA of Reliance Jio has also reported growth of 1% quarterly from Rs. 8,483 Cr. in
Q3FY21 to Rs. 8,573 Cr. in Q4FY21.
 Similarly, the EBITDA margin of the company has gone up by 330 basis points to
46.9% in Q4FY21. EBITDA margin was 43.6% in Q3FY21.
 EBIT of the company has remained flat in Q4FY21 to Rs 5,509 Cr. in Q4FY21 against
Rs. 5,531 Cr. in Q3FY21.
 Despite a flat change in EBIT of Jio, its EBIT Margin has remained at 30.1% in Q4FY21
against the 28.4% in Q3FY21.
 Reliance Jio comparatively has a much lower Finance Cost than Bharti Airtel of just
Rs. 801 Cr. as of March 2021, down by 6% QoQ.
 In the case of Jio, PBT is much better than Airtel of Rs. 4,708 Cr. in Q4FY21 and same
has grown by 0.6% QoQ from Rs. 4,680 Cr. in December Quarter of FY21.
  Lastly, Jio earned a net profit of Rs. 3,508 Cr. in the quarter ended 31 st March 2021,
up by 0.5% from Rs. 3,489 Cr. from Q3FY21.

 Evaluating Balance sheet Strength -Debt/ Liability Comparison

BHARTI AIRTEL AND RELIANCE JIO

 If we look at the Balance Sheet of Airtel, we find that the Debt of the company has
increased by 19% YoY from Rs. 1,24,521 Cr. in the quarter ended 31 st March 2020
to Rs. 1,48,507 Cr. in the quarter ended 31st March 2021.
 Sequentially, the Debt of Airtel has gone by 0.7% from Rs. 1,47,440 Cr. in December
Quarter of FY21.
 Also, Airtel has recognized the AGR-related Liability on its Balance Sheet of Rs.
24,840 Cr. and Rs. 23,861 Cr. in Q3FY21 and Q4FY21 respectively.
 On the other hand, Reliance is a net-debt-free company and hence having a positive
figure as well for the company.
 Reliance is having Cash & cash equivalent as of Mar’21 includes balance call towards
Right Issue (Rs.39,843 Cr).
 Comparative Analysis on Operating Parameters

Overall Subscriber Base:

 Bharti Airtel is having a subscriber base of 32.14 Cr. as of March 2021, which has
gone up from the levels of 28.37 Cr. in March 2020 to 29.37 Cr. in September 2020
and 30.79 Cr. in December 2020.
 In the March Quarter 2021, Airtel managed to add 1.34 Cr. new customers to their
network.
 For Reliance Jio, the total Subscriber base is 42.62 Cr. as of March 2021 which has
also increased quarter-on-quarter from 38.84 Cr. in March 2020 to 40.56 Cr. in June
2020, and 41.08 Cr. in December 2020.
 In terms of Net Subscriber Addition, Jio has beaten Airtel by adding 1.54 Cr. new
subscribers to the network.
 Monthly Churn Rate:

 In terms of Churn rate also, Reliance Jio has performed better than Bharti Airtel.
 The Monthly Churn Rate of Airtel is 2.2% as of March 2021, the same is 1.26% for Jio
in the same period.
 Previous data for Churn Rate of Reliance Jio are as follows: 0.57% (March 2020),
0.46% (June 2020), 1.7% (September 2020), and 1.6% (December 2020).
 Previous data for the Churn Rate of Bharti Airtel are as follows: 2.6% (March 2020),
2.2% (June 2020), 1.7% (September 2020), and 1.9% (December 2020).
 Jio has successfully managed to reduce the churn rate QoQ:
a) Strong Sales Initiatives
b) Several Consumer-focused Services: Launch of 2021 JioPhone to cater to first-time
internet user in India.
Prepaid as a % of Total Subscriber Base:
 Airtel is having 94.8% Prepaid Subscribers as a % of the Total Subscriber Base.
 The same data is not yet available for Reliance Jio.

Average Revenue Per User- ARPU Rs./Per Month:

 The Average Revenue Per User (Including IUC Revenue) of Airtel has come down to
Rs. 145 in March Quarter of FY21 from Rs. 166 in December 2020.
 While Average Revenue Per User for Jio is Rs. 138 as of March 2021. It has come
down from Rs. 151 in December 2020.
 Mar-21 ARPU of both declined QoQ, dragged by removal of IUC charges (which
becomes zero from January 1, 2021)
 Airtel outpaced Jio in ARPU on the back of the company’s focus on acquiring quality
customers as well as up-gradation of existing customers to 4G, which directly
reflects in its improved ARPU of airtel vs Jio.
Wireless Data Consumption and Per Capita Data Consumption:
 Airtel is having a Wireless Data Consumption of 920 Cr. GB, while the same is 1,668
Cr. GB for Reliance as of March 2021.
 Here also, Jio is having higher Total Wireless Data Consumption due to a higher
subscriber base
 In the context of Per Capita Data Consumption, Airtel has performed well than Jio
with 16.84 GB per month as of March 2021, same is 13.3 GB per month for Jio.
 Airtel outpaced Jio in terms of per capita Data consumption due to:
a) Quality customers
b) Robust growth momentum in up-gradation of customers to 4G
 Airtel is having a Strong Share of 4G net additions in the market
 4G data customers increased by 31.5% YoY to 17.93 Cr, addition of 4.3 Cr 4G
customers in FY21
 Strong 4G penetration: Almost 56% of total customer base (Mar-21)
Wired Broadband Customers:
 As of February 2021, Bharti Airtel is having 29.9 Lakh Wired Broadband Customer
slightly higher than Reliance Jio, which is having 24.3 Lakh Wired Broadband
Customers in the same period.

Voice on Network & Per Capita Voice Consumption:

  As of March 2021, Airtel is having 997 Cr. Minutes per day of Voice on Network
against 1,148 Cr. Minutes per day of Voice on Network of Jio.
 Jio outpaces Airtel in Total voice on Network due to higher subscriber base.
 In terms of Per Capita Consumption, Airtel is having 1,053 Minutes per month while
the same is 823 minutes per month for Reliance Jio as of March 2021.
 Airtel is ahead of Jio in terms of per capita voice consumption due to higher voice
usage per customer.

Competitive Positioning in Telecom Industry

Latest Market Share:

 In terms of Total Subscribers Market Shares, Reliance Jio is the market leader with a
35.54% market share as of February 2021.
 Next to Jio is Airtel, with a 29.83% market share.
 Now, considering the Active Subscribers Market Share of the players, here, Airtel is
the leader with 34.6% market share.
 In Active Subscribers Market Share, the second position is acquired by Reliance Jio
with a 33% market share.