According to the Telecom Regulatory Authority of India (TRAI), in a visible sign of a turnaround in the Indian telecom sector, the industry’s revenue grew by 10.1 per cent in financial year 2014, compared with an 8.6 per cent growth in the previous year.

The regulator has stated that the top three operators in the country have garnered a combined revenue market share (RMS) of 70.4 per cent in the fourth quarter of 2014. Bharti Airtel, the country’s leading operator by revenue and subscribers reported an RMS of 30.5 per cent, followed by Vodafone India and Idea Cellular with RMS of 23.4 per cent and 16.6 per cent, respectively.

According to various industry reports, over the last year, the top three operators have been increasing RMS in key circles such as Madhya Pradesh, Kerala, Mumbai, Uttar Pradesh (West), Maharashtra and Delhi where the smaller players are struggling to hold on to their respective market shares.

The fact that the top three operators had a combined RMS of 70.4 per cent in the fourth quarter of 2014 and accounted for 91 per cent of incremental industry revenue for the full financial year indicates that the smaller operators are consistently losing ground, setting the stage for the much needed consolidation in the telecom sector.