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The telecom industry’s VLR base increased by 3.6mn in Jul-23, improving from the 0.5mn decline in Jun-23. VIL continued to lose VLR subscribers (-0.4mn), while Bharti/Jio saw subscriber addition of 3.2mn/1.4mn. In terms of overall subscribers, Jio continued to report the highest subscriber addition for the 16th straight month (3.9mn), with Bharti lagging at 1.5mn. VIL lost another 1.3mn. The overall subscriber base increased by 2.7mn. Jio also had a lead in wireless broadband subscriber additions, recording an increase of 3.9mn, followed by Bharti reporting a 2.9mn increase MoM. VIL’s wireless broadband subscribers were down 0.6mn MoM. Jio maintained its lead on the wireline front as well, with the addition of 0.23mn subscribers. Even as Jio and Bharti continue with 5G rollouts, the timing of the tariff hike remains the key trigger. VIL needs a sizable fund-raising at the earliest to increase capex to restrict the loss of more subscribers.

Overall subscriber base was up 2.7mn MoM, with Jio adding the highest number of subscribers yet again, followed by Bharti. VIL’s base declined for the 28th month in a row, down by 1.3mn. The industry’s VLR base improved by 3.6mn MoM, with Bharti (up 3.2mn) and Jio (up 1.4mn) adding VLR subscribers. VIL lost 0.4mn VLR subscribers.

Broadband subscriber base: Jio maintains the lead Jio was the leader in wireless broadband subscriber additions, with 3.9mn growth MoM, while Bharti added 2.9mn broadband subscribers. VIL’s wireless broadband subscribers were down 0.6mn MoM. This is the fifth successive month that Jio has added more wireless broadband subscribers than Bharti. Jio continued to consolidate its leadership position in the wireline broadband space, with 0.23mn additions (vs. +0.25mn in Jun23). Bharti maintained its No. 2 position with 0.17mn additions (+0.14mn in Jun-23).

Player-wise analysis

Bharti Airtel: Bharti added 1.5mn wireless subscribers in Jul-23. Its VLR base grew by 3.2mn, with VLR proportion improving to 100.2% vs. 99.7% in Jun-23. Delhi and Karnataka were the main contributors to the VLR increase, while UP (E) and Bihar were the major laggards. Bharti discontinued its Rs99 plan in Feb-23 in 19 remaining circles, which may have impacted the company’s subscriber addition when compared with Jio.

Reliance Jio: Jio added 3.9mn subscribers in Jul-23, up from the 2.3mn added in Jun23. This is the 17th straight month of subscriber addition for Jio; its VLR base grew by 1.4mn, as its VLR proportion was down QoQ at 94% in Jul-23 from 94.5% in Jun-23. Maharashtra and Mumbai were the main contributors to the VLR increase, while UP (E) and Gujarat were the major laggards.

Vodafone Idea: Subscriber losses persisted in Jul-23, with the telco losing another 1.3mn subscribers. The VLR base declined by 0.4mn (moderation from 2.5mn dip in Jun-23), as the VLR proportion improved to 88.6% in Jul-23 from 88.3% in Jul-23. This is the 16th consecutive month of the VLR subscriber-base decline. VIL lost VLR subscribers in 14 of the 22 circles MoM in July. The dip in VLR base was led by UP (E) and Bihar, whereas Maharashtra reported the highest increase in the VLR base.

Urban-Rural Mix: Jio’s performance on the rural front also improved, with the addition of 2.0mn subscribers, while Bharti lost 0.5mn rural subscribers. Jio continued to report the highest urban mix at 56%, followed by Bharti at 51.8% and VIL at 51.2%.