Jio's Active Subscriber Surge Continues as Airtel and Vi Face Losses; BSNL's Growth Slows Down: TRAI Report

New Delhi (The Uttam Hindu): Reliance Jio emerged as the clear winner for the second consecutive month, adding 1.7 million active subscribers in September 2024. This contrasts sharply with rivals Bharti Airtel and Vodafone Idea (Vi), which lost 1.3 million and 3.1 million active subscribers, respectively, according to the latest data from the Telecom Regulatory Authority of India (TRAI).

The overall industry witnessed a decline in active subscribers for the third straight month, dropping by 1.5 million to reach a base of 1,060 million. This trend suggests potential SIM consolidation among users. Notably, the losses were predominantly in B and C circles, which saw declines of 3.2 million and 0.9 million subscribers, respectively. In contrast, metropolitan areas and A circles experienced growth, adding 1.8 million and 0.7 million subscribers, indicating better tariff absorption among urban consumers.

BSNL, which had enjoyed a dream run in the previous two months, saw its market share gains moderate. The state-owned operator added only 1.5 million wireless data broadband subscribers in September, a significant drop from the average of 5.6 million in July and August. Furthermore, BSNL lost subscribers in six circles, signalling a slowdown after its recent surge.

Reliance Jio's sustained growth can be attributed to its strategic decision to avoid tariff hikes in the feature phone segment, making it more appealing to price-sensitive customers. Similarly, BSNL and MTNL have benefited from their lack of tariff increases, collectively adding 1.2 million subscribers. However, analysts suggest that while BSNL and MTNL may continue to gain share due to lower tariffs, they are unlikely to significantly challenge the market trajectories of Jio and Bharti Airtel in the medium term.

Wireline broadband also saw moderated growth, with net additions of 0.79 million subscribers in September compared to 0.86 million in August, bringing the total to 43.6 million. Reliance Jio and Bharti Airtel added 0.62 million and 0.19 million subscribers, respectively, boosting their market shares to 32.5% and 19.4%, whereas BSNL lost more than 52 thousand wireline subscribers.

Private telcos disclosed in their quarterly earnings the decline in overall subscriber bases after the tariff increase in July 2024. For September 2024, private telcos lost 10.9 million subscribers, whereas BSNL gained 0.8 million subscribers. Industry experts note that the recent declines were anticipated following tariff hikes in July 2024. The normalisation in subscriber additions reflects a market adjusting to new pricing structures, with urban areas showing resilience while rural regions lag.