In September 2024, India’s telecom sector saw a large drop in subscribers, losing over 1 crore users, as per data from the Telecom Regulatory Authority of India (TRAI). Among the big private telecom companies, Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) were the hardest hit, while Bharat Sanchar Nigam Limited (BSNL) emerged as the only company to gain subscribers during the month.
Losses for Jio, Airtel, and Vi
Reliance Jio, the largest telecom operator in India, experienced the most significant loss, shedding 79 lakh subscribers. This dropped its total to 46.37 crore subscribers. Similarly, Airtel lost 14 lakh users, leaving it with 38.34 crore subscribers. Vodafone Idea (Vi) saw a net loss of 15 lakh subscribers, bringing its total to 21.24 crore. These losses reflect challenges faced by these operators in retaining customers, especially after tariff hikes introduced in July.
To increase their earnings, Jio and Airtel raised their prepaid and postpaid plan rates by up to 25%. While these hikes were meant to boost profits, they seem to have caused many customers to leave their services.
BSNL Gains Subscribers
In contrast to the losses of Jio, Airtel, and Vi, BSNL gained 8.49 lakh subscribers, bringing its total user base to 9.18 crore. The state-owned BSNL managed to increase its subscriber count without raising prices. Instead, the company focused on affordable services and customer-friendly features, such as automated SIM kiosks and tools to block spam calls. In a statement, BSNL’s Chairman and Managing Director, Robert Ravi, confirmed that the company would not raise tariffs in the near future, focusing on expanding its market share.
Impact on the Telecom Sector
The total wireless subscriber base in India dropped by 1.08 crore in September 2024. This decrease led to a reduction in teledensity (the number of phones per 100 people), which fell from 85.43% in August to 84.69% in September. Both urban and rural areas saw declines in wireless subscriptions, with urban areas down by 0.80% and rural areas down by 0.95%.
In the broadband segment, which includes both wired and wireless connections, there was also a loss of 51 lakh subscribers, leaving the total at 94.4 crore users.
Market Shares and Mobile Portability
Despite the subscriber losses, Reliance Jio maintained its position as the market leader with a 40.20% market share, followed by Airtel with 33.24% and Vodafone Idea with 18.41%. BSNL held a 7.98% market share. In the broadband market, Jio led with 50.61%, while Airtel had 30.20% and Vi had 13.38%.
There was a significant surge in mobile number portability (MNP) requests in September. A total of 1.33 crore MNP requests were made, highlighting increased customer dissatisfaction and a growing tendency to switch telecom providers due to the price hikes.
The September 2024 subscriber data paints a challenging picture for major private telecom companies like Jio, Airtel, and Vi, all of whom saw a decline in users. On the other hand, BSNL bucked the trend by gaining subscribers through affordable services and customer-focused initiatives. The increase in MNP requests further indicates the shift in consumer behavior in response to rising costs in the telecom sector.
