Reliance Jio Outpaces Rivals Amid Telecom Subscriber Shifts

Reliance Jio has solidified its lead in India’s telecom sector with a 1.7 million gain in subscribers, contrasting Bharti Airtel's and Vodafone Idea's losses. Tariff strategy and ISD plan adjustments bolster Jio's success. Overall, the telecom industry experienced subscriber decline, with BSNL's growth moderating.

Reliance Jio has once again emerged as a dominant force in India's telecom landscape, adding 1.7 million active subscribers in September 2024, according to the latest data from the Telecom Regulatory Authority of India (TRAI). Morgan Stanley's research highlights Jio's growth, contrasting Bharti Airtel's and Vodafone Idea's respective losses of 1.3 million and 3.1 million subscribers.

The telecom sector experienced a decline of 1.5 million active subscribers, marking a consecutive three-month downward trend. This trend, characterized by potential SIM consolidation, is more pronounced in B and C circles, where subscriber numbers fell by 3.2 million and 0.9 million. In contrast, metropolitan and A circles saw gains of 1.8 million and 0.7 million subscribers respectively, pointing to robust tariff absorption in urban areas.

Jio's continued success is attributed to its strategic decision to maintain stable tariffs, particularly in the feature phone space, appealing to price-sensitive users. Recently, Jio adjusted its geographic-specific ISD plans, reducing rates for calls to Bangladesh and expanding coverage in Europe. These moves have positioned Jio as an attractive choice among competitors.

BSNL, after significant gains in recent months, saw a slowdown in September with 1.5 million wireless data subscribers added, down from previous months. Despite challenges, BSNL and MTNL avoid tariff hikes, attracting a combined 1.2 million new subscribers, although their ability to contend with Jio and Airtel is limited.

The wireline broadband segment saw Jio achieving notable gains with 0.62 million new subscribers, increasing its market share to 32.5%, while Airtel added 0.19 million subscribers. BSNL, facing challenges, lost over 52,000 wireline customers. Experts attribute declines in private telco subscriber numbers to tariff increases since July 2024, with private operators collectively losing 10.9 million subscribers. However, BSNL's low tariffs have driven a gain of 0.8 million subscribers.

(With inputs from agencies.)