Reliance Jio became the country's largest telecom player in terms of subscribers at the cost of loss in Vodafone Idea's customer base, India Ratings and Research said in report on Monday.
Reliance Jio has become the largest telecom player with 36.9 crore mobile subscribers in November 2019, according to the data published by telecom regulator Trai this month.
Vodafone Idea reported a total mobile subscriber base of 33.62 crore and Bharti Airtel at 32.73 crore customers for November 2019.
"The increase in RJio's subscriber base is largely at the cost of reduction in the subscriber base of Vodafone Idea Limited, whose subscriber market share has declined consistently in last two years," Ind-Ra report said.
The rating agencies said the revenue market share of RJio also grew to 34.9 per cent in the second quarter of current fiscal, which is highest in the industry compared to other players.
"The average revenue per user (ARPU) reported by telecom companies (telcos) has started showing signs of recovery in the last two to three quarters. Moreover, the recent tariff hikes by telcos in the range of 25 to 35 per cent is likely to support the increase in ARPU over the next few quarters," Ind-Ra said.
The agency on Friday downgraded the rating of Rs 3,500 crore non-convertible debentures of Vodafone Idea on account of liabilities related to adjusted gross revenue dues.
The NCDs were issued by erstwhile Vodafone Mobile Services.
The credit rating firm downgraded the rating by one level to IND BBB from IND A+ and placed it in "rating watch negative" indicating chance of further lowering of its ability to pay for the debt note.
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