Jio Leads in Subscriber Losses Amid Tariff Pressures
Reliance Jio, India’s largest telecom operator, recorded a significant subscriber decline for the fourth consecutive month in October 2024, losing 3.76 million users, as per data from the Telecom Regulatory Authority of India (Trai). This follows a broader trend of subscriber attrition triggered by the tariff hikes introduced by private sector telcos in July. While Jio’s October losses were less steep than the 7.96 million and 4.01 million users lost in September and August, respectively, the cumulative four-month decline totals 16.48 million subscribers—representing a 3.45% reduction in its total base of 476.52 million at June-end.
In contrast, Bharti Airtel demonstrated signs of recovery, adding 1.92 million subscribers in October after three months of declining numbers. This turnaround indicates Airtel’s improved ability to retain users despite tariff increases. However, financially beleaguered Vodafone Idea (Vi) continued to struggle, shedding 1.97 million users in October, marking its largest loss in four months.
BSNL Gains Amid Private Sector Challenges
State-owned Bharat Sanchar Nigam Limited (BSNL) emerged as a beneficiary of the ongoing market churn, albeit at a slower pace. After consistent subscriber gains in the previous months—2.9 million in July, 2.53 million in August, and 0.84 million in September—BSNL added 0.51 million users in October. With tariffs left unchanged, BSNL has attracted a significant number of entry-level subscribers seeking affordable plans.
The operator’s focus on maintaining competitive pricing aligns with its strategic rollout of a home-grown 4G network, expected to deploy 1 lakh towers nationwide by mid-2025. This move positions BSNL as a viable alternative for budget-conscious users, even as private telcos navigate the challenges brought on by their July tariff hikes.
Market Dynamics: Consolidation and MNP Requests Surge
The tariff revisions by Reliance Jio, Airtel, and Vi have catalyzed SIM consolidations and subscription cancellations across the telecom sector. The overall number of mobile phone connections in India fell by 3.3 million in October, a marked improvement from September’s 10.1 million drop.
Additionally, mobile number portability (MNP) activity remained robust, with 13.45 million requests in October, up from September’s 13.32 million but below August’s 14.6 million. These shifts underscore changing consumer behavior as affordability becomes a decisive factor in subscription retention.
As the telecom sector continues to adjust to these dynamics, the competition between private telcos and BSNL remains a focal point. While tariff hikes strain subscriber retention for Reliance Jio, Airtel, and Vi, BSNL’s steady gains reflect a potential resurgence for the state-owned operator.
