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Subscriber run-rate momentum improves

RJio sees strong gains; Bharti stays put, while VIL continues to remain in the red The Telecom Regulatory Authority of India (TRAI) released data for Jul’21. Here are the key highlights:

* Industry subscriber base saw steady growth in gross/active subscribers of 8.5m/4m, reaching 1,189m/989m. In Jun’21, the same grew by 4m/1.3 as the industry witnessed gradual recovery post the lifting of lockdown restrictions. This was mainly led by RJio, Bharti saw moderate growth, and VIL continued to see a decline.

* The biggest gain was seen in RJio, with gross/active subscriber additions of 6.5m/6.1m each (v/s 5.5m/2.4m additions in Jun’21) to 443m/346m, adding 30bp/40bp market share. This was mainly supported by a strong performance in rural market, with 3.5m subscriber additions, estimated to be from JioPhone. 4G additions too were strong at 6.9m. RJio gained 40bp in active subscriber market share and now shares market leadership position with Bharti.

* Bharti saw gross/active subscriber additions of 1.9m/2.3m to 354m/346m, slower than last month (3.8m/2.4m additions in Jun’21). Active subscriber market share improved by 10bp to 35%. It maintained its 4G subscriber additions at a steady run-rate of 4.5m to 198.2m.

* VIL’s gross/active subscribers continued to decline at 1.4m/3.3m to 272m/238m, albeit at a slightly slower pace as against 4.3m/4.9m in Jun’21. Barring a couple of months of positive growth, it has consistently declined over the last 2-3 years. The only silver lining was that its 4G subscriber base continued to grow for the second straight month at 2.6m to 123.9m.

* Industry 4G subscribers grew by 14.8m to 783.4m, with 4G subscribers accounting for 79% of active subscribers.

* RJio/Bharti continued their steady gains, with additions of 6.9m/4.5m (4.2m/5.5m in Jun’21). VIL added 2.6m, positive for the second straight month.

* Industry wired broadband subscribers remained positive with 0.5m additions to 24m v/s an average of 0.3-0.4m in the last few months. RJio/Bharti added 0.3m/0.5m subscribers, while smaller players lost a combined 0.14m for the first time in the last 15 months.

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