IGI Logo

TRAI’s May’23 subscriber (subs) data shows industry’s MBB (mobile broadband — 3G+4G) subs addition was robust at 5.3mn (vs. ~5mn additions per month since May’22). MBB additions, in May’23, continued to be robust for Jio (3.0mn) and Bharti (2.1mn), while VIL’s MBB subs base was flattish MoM after declining in two out of the last 3 months. Industry’s active subs also rose by a strong 5mn in May’23 due to addition of 4.9mn/2.4mn for Jio/Bharti; however, active subs base continued to decline for VIL (1.8mn). Industry’s overall subs increased by a marginal 0.1mn in May’23, continuing the muted growth/declining trend since Dec’21 due to churn in the lower ARPU segments given the sharp jump in entry level prepaid tariffs. Jio’s net subs rose for the 15th consecutive month (up 3.0mn in May’23); active subs addition was also strong at 4.9mn. Hence, Jio’s VLR ratio improved MoM to 94.5% in May’23 vs. 94% in Apr’23 and vs. 100.1% for Bharti and 88.9% for VIL. Bharti’s MBB subs addition was robust at 2.1mn in May’23 and active subs addition was even better at 2.4mn. VIL’s MBB subs was flat in May’23 after declining in two out of the last 3 months; further, the decline in active subs continues for the company. Separately, Jio and Bharti’s robust FTTH addition continues.

* Jio’s net subs rises for the 15th consecutive month (up 3.0mn in May’23); active subs addition also strong at 4.9mn: Jio’s net subs rose by 3.0mn in May’23 following a monthly increase ranging from 0.7mn to 3.3mn since Mar’22. Jio had reported a net subs loss of 3.7mn/9.3mn/12.9mn/19mn in Feb’22/Jan’22/Dec’21/Sep’21 due to sim consolidation post the Nov’21 tariff hike and repurposing of customer retention efforts for low-ARPU subscribers. Jio’s active subs rose again by a strong 4.9mn in May’23, continuing the robust trend of 4.7mn/4.9mn/3.2mn/3.5mn/3.0mn in Apr’23/Mar’23/Feb’23/Jan’23/Dec’22. Hence, Jio’s VLR ratio improved MoM to 94.5% in May’23 vs. 94% in Apr’23 and vs. 100.1% for Bharti and 88.9% for VIL.

* Bharti’s MBB subs addition robust at 2.1mn in May’23; active subs addition even better at 2.4mn: Bharti’s MBB (mobile broadband – 3G+4G) subs addition continued to be robust at 2.1mn in May’23 after the company reported robust addition of 1.5mn-3mn each month in Feb’22-Apr’23 (except for a decline of 0.3mn in Apr’22). Moreover, Bharti’s active subs base addition was even better at 2.4mn in May’23; it has seen steady addition of ~1mn-2mn each month since May’22 (except for 1.0mn decline each in Jul’22 and Oct’22); hence, its VLR ratio remained strong at 100.1% in May’23.

* VIL’s MBB subs flattish in May’23; decline in active subs continues: VIL’s MBB subs was flat in May’23 – after witnessing a decline in two out of the last 3 months (with this, Jan’22-May’23 cumulatively witnessed only 1.4mn rise in MBB subs). Further, its active subs base declined by 1.8mn in May’23, continuing the declining trend over the past many months due to churn in the lower ARPU segments given the entry level prepaid tariffs undertaken in Jul’21 and Nov’21. Notwithstanding the moratoriums, VIL needs to close the fund-raise exercise quickly for a meaningful increase in capex to boost upgrade of customers to MBB.

* Jio and Bharti’s robust FTTH addition continues: Jio’s FTTH subs additions continued to be robust at 0.27mn in May’23 (vs. peak addition of 0.35mn in Apr’22). Further, Bharti’s FTTH subs addition was also robust at 0.15mn in Apr’23 (vs. peak addition of 0.17mn in Jul’21).

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.jmfl.com/disclaimer

SEBI Registration Number is INM000010361

Above views are of the author and not of the website kindly read disclaimer