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Bharti gains market share across all circle categories; RJio loses market share in B/C circle, but retains overall pole position.

TRAI released its quarterly telecom financial data for 1QFY24. Below are the key highlights:

Flat subscriber growth and absence of tariff hike led to soft AGR growth

The telecom industry grew 2.3% QoQ (AGR incl NLD) in 1QFY24, primarily driven by an ARPU growth of 2.3% QoQ compared to an average QoQ growth of 3% witnessed over the past eight quarters. Industry subscriber growth was flat, indicating the underlying trend of 1) an ongoing consolidation of dual SIM cards in the market, and 2) a noticeable shift from 2G to 4G as subscribers opt to upgrade their services. While Bharti and RJio witnessed AGR growth of 4.1%/2.1% QoQ, IDEA posted a growth of 0.7% QoQ. As a result, Bharti’s market share increased to 36.8% in 1QFY24, exhibiting a well-distributed growth across all circle categories. RJio’s market share remained flat QoQ at 41.2% as it lost market share in B/C circles. VIL’s market share continues to drop by 30bp QoQ to 16.1%. Bharti’s growth is largely driven by an improvement in ARPU, while RJio’s growth is led by steady subscriber growth.

ARPU grows for all telcos

Industry ARPU grew by 2.3% QoQ, primarily led by an enhanced subscriber mix and a focus on premium services. Bharti/VIL ARPU improved by 3.2% QoQ each to INR 191/INR134, while RJio ARPU improved marginally to INR183. The subscriber base for Bharti grew by 0.8% QoQ to 374m and RJio grew by 1.9% QoQ to 439m. VIL posted a 3% drop in the number of subscribers to 230m.

Circle-wise AGR share – Bharti gained market share in most of the circles

Out of the total 22 circles, Bharti/RJio/VIL saw market share improvement in 12/8/9 circles.

* Bharti/ RJio gained 40/60bp market share in Metro and A circle to 37.2%/40.6%, while VIL lost 30bp to 16.4% in 1QFY24.

* Bharti gained market share in Mumbai/Kolkata circles by +200bp QoQ to 34.5%/30.5%.

* Rjio gained market share in Kolkata/AP/Gujarat by 140/150/200bp to 38%/40%/47%.

* VIL gained 370bp QoQ market share in Kolkata to 23.1%, while lost 170bp/120bp/160bp in Mumbai/Delhi/TN.

* In B Circles, Bharti’s market share rose by 60bp to 33.5%, while RJio/VIL lost by 90bp/10bp to 47.3%/14.9%.

* Airtel gained 150bp/200bp market share in UP(E)/WB, on the other hand, RJio lost 260bp/240bp in the same circles. VIL too gained 100bp market share in UP (East).

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