India’s telecom industry’s active wireless subscribers (also referred to as VLR subscribers) base expanded by 2.8 million in October, the third straight month of uptick led by strong addition for Reliance Jio (4.9 million). However, both Bharti Airtel (Airtel) and Vodafone Idea (VIL) saw their base contract by one-million and 0.5 million, respectively.
Looking ahead, the quantum and timelines for the tariff hike along with moderation in ongoing high level of subscriber churn will be keenly watched and offtake and progress on 5G rollout will be the key focus area for telcos, said market reports on Tuesday.
Jio added 1.4 million subscribers in October against 0.7 million in September. “VLR subscriber addition of 4.9 million was strong, with VLR ratio improving from 91.9 per cent in September to 92.8 per cent in October. The increase in VLR subscriber base was contributed by Bihar, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal, and Rajasthan, while Karnataka, Maharashtra, Gujarat, and Jammu & Kashmir saw a decline in the base,” said equity research firm Emkay Global in a report.
Overall decline
According to the monthly Telecom Subscription Data by Telecom Regulatory Authority of India (TRAI) the overall subscriber base fell for the second month in a row with VIL losing another 3.5 million subscribers in October.
Broadband
Jio’s subscribers addition was the highest among operators for the seventh month in a row, while Airtel saw its subscriber base inch up by 0.8 million. Airtel’s 2.3 million rural subscriber additions was the highest across operators. It also added the highest wireless broadband subscribers. Jio added the highest number of wired broadband subscribers (0.29 million) followed by Airtel (0.14 million).
According to IIFL Securities also, Jio and Airtel continue trend on fixed broadband. BSNL has added subscribers in the past six months after having witnessed sustained decline. Jio’s and Airtel’s fixed broadband is likely to get a fillip once they roll out 5G fixed wireless access (FWA) over time, it added.
Divergence between Airtel’s healthy mobile broadband subscriber additions and weak overall subscriber additions — indicates its 2G sub base seems to have witnessed Sim consolidation to some extent – probably due to inflationary pressures, it said.
“On the other hand, Airtel recently implemented a sharp price hike for its 2G pack in two circles. Considering the weakness in low income segments, it remains to be seen whether it extends the same on a pan-India basis. Sim consolidation that may potentially follow a sharp tariff hike, may limit the extent of revenue gains,” IIFL added.
