free web stats

Airtel adds more subscribers than Jio

Top telecom operator Bharti Airtel in April added more active subscribers than Reliance Jio Infocomm for the first time since the latter’s launch in September, said analysts who cautioned that the 4G entrant may continue to face challenges in user additions.

Sunil Mittal-led Bharti Airtel notched up 2.6 million active subscribers, according to ‘visitor location register’ or ‘VLR’, in April compared to Mukesh Ambani-owned Jio’s 400,000 active (VLR) customer adds, said brokerage Goldman Sachs, analysing data released by Telecom Regulatory Authority of India (Trai).

Visitor location register is a key metric indicating the number of subscribers actively using mobile services.

According to Goldman Sachs, data subscriber additions (3G/4G) continue to see an uptick for Bharti Airtel. With Jio starting to charge, it sees this number likely to stay strong for Airtel in the coming months as customers shift usage back to incumbents that have cut tariffs in response to Jio’s offers.

The US brokerage expects incremental subscriber additions for Jio to remain a challenge in coming months, pointing out that the firm’s 400,000 active (VLR) subscriber additions in April reflect “its fourth straight month of deceleration”.

ICICI Securities backed Goldman Sachs’ view, saying that despite Jio’s marginal pricing (with three months complimentary services on Prime membership), the 4G entrant’s “active subscribers as a percentage of total subscribers constantly falling with only 71% in April, which is disappointing”.

More so since Jio’s active subscribers as a percentage of total subscribers “were at just 63.1% and 62.8% in Mumbai and Kolkata, respectively”, it said.

On the contrary, the quantum of active subscribers as a percentage of total subscribers of the top three telcos – Bharti Airtel, Vodafone India and Idea Cellular – stood at nearly 98%.

Reliance Jio did not reply to ET’s queries on its modest active subscriber adds in April as of press time on Wednesday.

Sources close to the company did not give much significance to the VLR numbers, saying Jio’s total base of paid customers had actually grown sharply from around 72 million in end-March to over 80 million in end-April.

They also reiterated that Jio had edged out all its peers by adding nearly four million new users to reach a consumer base of 112.55 million.

Analysts expect Jio to make its next big push on subscriber additions once it launches 4G feature phone to target the mid-to-low end of the industry subscriber base. Until then, they expect, subscriber additions to remain subdued.

Updated: December 30, 2017 — 9:11 am

Leave a Reply

Your email address will not be published. Required fields are marked * © 2023 Frontier Theme
Enable Notifications OK No thanks