An Impact of Revenues of other telecom operators due to reliance jio's entry

Reliance Jio enters the telecom market when there are three established, well entrenched incumbent carriers-Bharti Airtel, Vodafone and Idea Cellular. They collectively control nearly 80% of the pan-india GSM customer base around 75% of the revenue market share. Only 25% of India's mobile phone subscriber use smart phones out of which 4G base is about 10–15%. Reliance Jio Infocomm Ltd's entry will be "credit negative" for incumbents in the telecom space and will also speed up consolidation, according to a Fitch Ratings report. The report said smaller telcos are likely to be impacted most and only a handful will emerge out of the shakedown. It predicted an increase in pressure on tariffs at a time when capital expenditure for incumbents is bound to increase with the upcoming spectrum auction. The rating agency also predicted a further dip in data tariffs and an increase in capital expenditure to provide an ecosystem for 4G services.