MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Mar 22, 2012 - Can Idea catch up with big brother Bharti?
Can Idea catch up with big brother Bharti?
The arena of the telecom sector in India has undergone a complete transformation in the past few years. Competition has intensified as many new players have entered the sector. The cut throat competition has led tariffs to reach a new low. The sector has transformed from a growth one to one where only the fittest will survive. And survive they did. The two companies that we are referring to have managed to stay afloat in the turbulent waters. The companies are India's largest and fourth largest telecom players Bharti Airtel and Idea Cellular.
But which of them presents a better opportunity to an investor? The largest or the fourth largest?
In the next few articles, we will compare Bharti Airtel and Idea Cellular on different parameters. Our intention is to provide information to the reader so that he can decide for himself as to which company is better to invest in.
In this article we will start with evaluating the two companies on the basis of their subscriber and revenue market shares.
Bharti Airtel is undoubtedly the largest telecom operator in the country. Therefore, one might ask - "Is it correct to compare the market shares of the two companies? Won't this just reflect Bharti as the leader?"
In terms of size of operations, Idea undoubtedly lags way behind Bharti Airtel. In fact for quite some time, Idea was considered to be a younger brother of Bharti that was simply following the leader's footsteps. But the truth is far from this. The strategy adopted by Idea has helped it to slowly climb the ladder and gain market share. From the bottom of the market share pyramid, the company has slowly but steadily gained ground and reached the position of being the fourth largest telecom operator (by subscriber numbers) in the country.
|
* Only includes subcribers in India |
While clearly Bharti is the market leader in terms of subscriber market share, however, over a period of time its share of subscribers has been declining. Idea, on the other hand, managed to stabilize its market share after the decline that took place when new operators entered. In fact, since December 2010, the company has seen its market share increasing, albeit at a slow pace.
Let us now take a look at the revenue market shares of the two companies.
|
Bharti does emerge as a clear winner in terms of revenue market share. However, its total share has been declining in recent times. On the other hand, the revenue market share for Idea has remained steady. In recent times, it has also started to increase. Though the gap between the two is large, in a hyper-competitive environment it becomes equally important to maintain market share as gaining larger share. This clearly indicates that the subscribers acquired by Idea not just increase its subscriber base, but the company has also been equally successful in translating these subscribers into meaningful revenue generators for itself. On the other hand, Bharti has managed to maintain its leadership position but its success rate of maintaining higher market share both in terms of numbers as well as revenues, has been on the decline.
Idea clearly emerges as the winner in this round. But how does it rank in terms of financials and valuations? We will cover these points in the next articles.
Equitymaster requests your view! Post a comment on "Can Idea catch up with big brother Bharti?". Click here!
2 Responses to "Can Idea catch up with big brother Bharti?"
Nidhin
Mar 22, 2012Hi, looking forward to this comparison between idea and bharti.
Just would like to point out that Bharti has subscribers abroad in Africa, Srilanka and Bangladesh. The figures do not reflect those numbers...i guess.
More Views on News
VODAFONE IDEA Announces Quarterly Results (1QFY20); Net Profit Down 2607.4% (Quarterly Result Update)
Jul 29, 2019 | Updated on Jul 29, 2019For the quarter ended June 2019, VODAFONE IDEA has posted a net profit of Rs 49 bn (down 2607.4% YoY). Sales on the other hand came in at Rs 113 bn (up 91.4% YoY). Read on for a complete analysis of VODAFONE IDEA's quarterly results.
VODAFONE IDEA Announces Quarterly Results (4QFY19); Net Profit Down 576.2% (Quarterly Result Update)
May 14, 2019 | Updated on May 14, 2019For the quarter ended March 2019, VODAFONE IDEA has posted a net profit of Rs 49 bn (down 576.2% YoY). Sales on the other hand came in at Rs 118 bn (up 91.9% YoY). Read on for a complete analysis of VODAFONE IDEA's quarterly results.
More Views on NewsMost Popular
It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)
Feb 24, 2021Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.
Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)
Feb 25, 2021In this video, I'll show you how to get started on the path to daily trading profits.
The Hidden Tesla in My Great Indian Wealth Project (Profit Hunter)
Feb 23, 2021An Indian company founded three decades ago in a garage caught my attention...
Gold 65,000 and Silver 84,000 in 2022
Feb 26, 2021In this episode of the Investor Hour, India's #1 trader, Vijay Bhambwani, talks to us about the stock market, his new targets for gold and silver, the best long-term investment opportunity, and a lot more.
MoreOUR TOP 5 IDEAS
- Free Report: Multibagger Stock Ideas 2021
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
VODAFONE IDEA SHARE PRICE
Mar 5, 2021 (Close)
TRACK VODAFONE IDEA
- Track your investment in VODAFONE IDEA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
- Add To MyStocks
MORE ON VODAFONE IDEA
VODAFONE IDEA - FRANCE TELECOM COMPARISON
COMPARE VODAFONE IDEA WITH
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
S C Gupta
Mar 23, 2012The graphs of subscriber market share and revenue market share will provide greater clirity only when total subscribers and total revenue growth are also presented on the same graphs.