IGI Logo

Jio/Bharti lead robust MBB and active subs addition; VIL’s struggle continues

TRAI’s Apr’23 subscriber (subs) data shows industry’s MBB (mobile broadband — 3G+4G) subs addition was robust at 4mn (vs. ~5mn additions per month since May’22, except for a moderate 1.6mn addition in Sep’22). MBB additions, in Apr’23, continued to be robust for Jio (3.0mn) and Bharti (2.3mn), while VIL recorded a decline for the second time in the last 3 months (-1.3mn) and BSNL lost 0.2mn. Industry’s active subs rose by a steady 4.2mn in Apr’23 due to addition of 4.7mn/0.7mn for Jio/Bharti; however, active subs base continued to decline for VIL (0.9mn). Industry’s overall subs fell by 0.8mn in Apr’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 14th consecutive month (up 3.0mn in Apr’23); active subs addition was also strong at 4.7mn. Hence, Jio’s VLR ratio recovered MoM to 94.0% in Apr’23 vs. 93.6% in Mar’23 (regained its peak of 94.0% achieved earlier in Feb’22) and vs. 99.8% for Bharti and 88.6% for VIL. Bharti’s MBB subs addition was robust at 2.3mn in Apr’23 while active subs addition was a bit lower at 0.7mn. VIL’s MBB subs declined by 1.3mn in Apr’23 for the second time in 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 14th consecutive month (up 3.0mn in Apr’23); active subs addition also strong at 4.7mn: Jio’s net subs rose by 3.0mn in Apr’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 strong 4.7mn in Apr’23, continuing the robust trend of 4.9mn/3.2mn/3.5mn/3.0mn in Mar’23/Feb’23/Jan’23/Dec’22, and 4.9mn/1.4mn/2.5mn in Oct’22/Sep’22/Aug’22. Hence, Jio’s VLR ratio recovered MoM to 94.0% in Apr’23 vs. 93.6% in Mar’23 (regained its peak of 94.0% achieved earlier in Feb’22) and vs. 99.8% for Bharti and 88.6% for VIL.

* Bharti’s MBB subs addition robust at 2.3mn in Apr’23; active subs addition steady at 0.7mn: Bharti’s MBB (mobile broadband – 3G+4G) subs addition continued to be robust at 2.3mn in Apr’23 after the company reported robust addition of 1.5mn-3mn each month in Feb’22-Mar’23 (except for a decline of 0.3mn in Apr’22). However, Bharti’s active subs base addition was a bit lower at 0.7mn in Apr’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 99.8% in Apr’23.

* VIL’s MBB subs declined by 1.3mn in Apr’23 - for the second time in the last 3 months; decline in active subs continues: VIL’s MBB subs declined by 1.3mn in Apr’23 - for the second time in the last 3 months (with this, Jan’22-Apr’23 cumulatively witnessed only 1.4mn rise in MBB subs). Further, its active subs base declined by 0.9mn in Apr’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 0.32mn in Apr’23,(vs. peak addition of 0.35mn in Apr’22). Further, Bharti’s FTTH subs addition was robust at 0.13mn 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