01-01-1970 12:00 AM | Source: Motilal Oswal Financial Services Ltd
Telecom Sector Update - SIM consolidation continues By Motilal Oswal
News By Tags | #4315 #3062 #276

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SIM consolidation continues

Bharti, RJio subscriber share inches up

The Telecom Regulatory Authority of India (TRAI) released data for Nov’21. Here are the key highlights:

* The gross subscriber base for the industry grew by 1.2m to 1,167m. On the other hand, the number of active subscribers remained flat at 996m (0.1m decline).

* The pace of active subscriber adds for RJio slowed to just 1.1m in Nov’21 (3.1m/4.7m in Oct’21/Sep’21), while Bharti Airtel saw marginally better recovery to 1.8m adds (v/s -0.8m/nil in Oct’21/Sep’21). VIL continued its downward trend with decline of 2.7m. Dec’21 is expected to see accelerated consolidation, triggered by the tariff hikes.

* Bharti’s gross/active subscriber adds turned positive with 1.3m/1.8m additions (v/s decline of 0.5m/0.8m in Oct’21), reaching a total count of 355m/348m. While the gross subscriber share remained flat at 30.4%, the active subscriber share improved by 20bps to 34.9%. 4G subscribers continued to witness low additions of 1.3m for the third consecutive month to 206m v/s the steady runrate of 3–4m historically.

* VIL’s gross/active subscriber share continued to decline by 1.9m/2.7m to reach 267m/232m, weighed by the price hike announcement. 4G subscribers also declined by 800k (1.2m in Sep’21) to 122m.

* RJio’s gross subscribers grew by 2m to reach 429m (v/s 1.8m adds in Oct’21); active subscribers adds saw slower growth of 1.1m (v/s healthy additions of 3– 4m historically) to reach 360m. 4G subscribers, in line with gross subscribers, grew by 2m.

* 4G subscriber adds for the industry slowed to 2.8m, reaching 775.93m for the fourth quarter in a row, much below the 8–10m adds seen earlier. This is given that the potential SIM card consolidation with 4G subscribers now accounts for 77.9% of active subscribers.

* Bharti’s 4G subscribers continued to grow, albeit at a slower rate of 1.3m (4m in Aug’21), while RJio gained 2m subscribers. VIL’s subscriber base declined by 800k to reach 122.4m.

* The number of wired broadband subscribers declined by 130k to 24.4m for the industry, after it had witnessed continued growth in this area. RJio/Bharti added 180k/100k, capturing share from BSNL’s 520k decline.

 

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