In February and March 2017, UBS Evidence Lab conducted an online consumer survey on the telecom usage of ~1,500 respondents in India. The survey was conducted in 8 cities in different states. Respondents were smartphone users and the decision makers/influencers in choosing mobile carriers. UBS analysts released a consumer survey report in May 2017.
Key Takeaways from the Report as shared by ET Telecom:
- The most favored carrier was Bharti Airtel
- There was no least favored carrier
- Nearly one-third of respondents were Reliance Jio users, but nearly 50 percent of them used it as a secondary SIM
- Survey suggests satisfaction level of Jio is comparable to Airtel
- Jio’s share of revenues at 5.7% in FY2018, will rise to 9.8% by FY2020
- Recently launched bundled plans by incumbents suggests pricing gap with Jio has narrowed
- UBS estimates industry revenue to decline 4% in FY2017 and grow 1.7% in FY2018, below the 9-11% growth in FY15
- The need for continued spending on capex and spectrum is triggering industry consolidation
- There is a clear correlation between market share and margins for telcos; greater scale should provide operating leverage for Idea-Vodafone
