Who Gains The Most If Rivals Follow Reliance Jio’s U-Turn

Mukesh Ambani has shown bruised Indian telecom operators a way to earn more revenue.

If Vodafone Idea and Bharti Airtel start charging 6 paise a minute on outgoing calls to other networks, their revenue in the first quarter of financial year 2020 would have been 7-11 percent higher.

Assuming that 80 percent of this increased revenue would flow to operating profit as costs won’t rise much, their Ebitda would have been 29-48 percent higher, making them bigger beneficiaries. In absolute terms, Reliance Jio would have earned more compared with the other two.