As Reliance Jio and Bharti Airtel focus on expanding 5G rollouts, the key trigger for the telecom sector’s future growth lies in the quantum and timing of tariff hikes, Emkay said in a research note following the release of TRAI’s April 2023 subscriber addition data. Another major Indian player Vodafone Idea faces a critical situation with falling subscriber numbers, and requires substantial fundraising at the earliest to address challenges, Emkay said in the note. “For VIL, the situation continues to be dire and a sizable fund-raising is required at the earliest,” it said.
April telecom subscriber additions: Reliance Jio in leading the pack
In the month of April, Reliance Jio maintained its position as the frontrunner, reporting the highest number of subscriber additions for the 13th consecutive month, followed by Bharti Airtel. According to the report, the overall subscriber base in the telecom industry experienced a decline of 0.9 million. Reliance Jio added the highest number of subscribers once again, with 3.0 million additions, while Bharti Airtel trailed behind with 0.1 million additions. Vodafone Idea suffered a significant loss, with its subscriber base declining for the 25th consecutive month by 3.0 million subscribers.
Bharti Airtel trails Reliance Jio; here’s what may have hurt Airtel
A closer look at the individual telecom operators reveals that Bharti Airtel added 0.1 million wireless subscribers, maintaining stability compared to the previous month. Its Visitor Location Register (VLR) base increased by 0.7 million, with notable contributions from Bihar, Uttar Pradesh (East), and West Bengal. However, circles such as Delhi, Mumbai, and Punjab experienced slower growth. The discontinuation of the Rs 99 plan in select circles since November 2022 might have impacted Bharti Airtel’s subscriber additions.
Reliance Jio continued its strong performance by adding 3.0 million subscribers, extending its streak to 14 consecutive months of growth. Its VLR base grew by 4.7 million, with improvements in Andhra Pradesh, Bihar, and Maharashtra, while Uttar Pradesh (East) witnessed a decline.
Vodafone Idea: Where it lost ground
Vodafone Idea faced ongoing challenges, losing another 3.0 million subscribers, leading to a decline in the VLR base by 0.9 million. The VLR proportion increased to 88.6% in March 2023 from 87.8% in the previous month. Maharashtra, Rajasthan, and Tamil Nadu contributed to the decrease, while Gujarat and Uttar Pradesh (West) reported some growth in their subscriber bases.
In terms of the urban-rural mix, Reliance Jio’s performance in rural areas showed improvement with an increase of 1.6 million subscribers. Bharti Airtel also added 0.2 million rural subscribers. Reliance Jio continued to have the highest urban mix at 56.1%, followed by Bharti Airtel at 51.5%, and Vodafone Idea at 51.2%.