Reliance Jio may maintain the momentum and soon known to be the leading wireless telecom company in India. Reliance Jio’s net revenue may have crossed Bharti Airtel Ltd’s wireless revenue in India last quarter.

Reliance Jio’s reported revenues of 92.4 billion net of interconnect revenues as the company adjust interconnect revenues in cost line while Airtel net revenues around Rs. 87-88 billion for 2QFY19.

Reliance Jio continues to be an accelerated capex drive spending around Rs. 330 billion in H1FY19(Q2 spend Rs160 billion) which is 70% its own FY18 capex and is largely equivalent to the combo CapEx spend of the remaining two holders (Bharti Airtel, Vodafone Idea) put together in FY18.

Reliance Jio is unlikely to relent till it achieves a significant market leadership in terms of revenue market share. Its progress should please its shareholders but elevated costs indicated that costs reflect that the operator is yet to impress on profitability and net earnings. This may take some time as Reliance Jio sees no imminent need for price rationalization.

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