Jio, Airtel, and Vi Lose Customers After Tariff Hike; BSNL Emerges as the Only Gainer in July

The impact of the recent tariff hike in mobile services became evident in July, as leading telecom giants Reliance Jio, Bharti Airtel, and Vodafone Idea reported a notable loss of customers. This decline resulted in an overall drop in the country's telecom subscriber base. In the first week of July, these major telecom players raised their mobile service plan prices by 10-27%, affecting millions of subscribers.

Airtel and Vodafone Idea have particularly doubled their entry-level mobile plan costs over the past 2-3 years, with their basic plan now priced at ₹199, offering 28 days of validity. On the other hand, state-run Bharat Sanchar Nigam Limited (BSNL) stood out as the only telecom provider to record a positive customer addition in July, leading the market with new net subscribers, according to the Telecom Regulatory Authority of India (TRAI) monthly report released on Friday.

BSNL’s Strong Growth Amid Tariff Hikes

As per the  Telecom Regulatory Authority of India TRAI report, BSNL successfully added 2.94 million new mobile subscribers in July, establishing itself as the top performer in the industry. In contrast, Bharti Airtel faced the highest subscriber loss among its peers, losing 1.69 million mobile customers. Vodafone Idea followed suit, shedding 1.41 million customers, while Reliance Jio lost 758,000 subscribers.

Despite the customer losses by private telecom players, the overall telecom subscriber base in India saw only a marginal decline, decreasing from 1,205.64 million in June to 1,205.17 million in July. Several key telecom circles, including North East, Maharashtra, Rajasthan, Mumbai, Kolkata, Tamil Nadu, Punjab, Bihar, West Bengal, UP East, Haryana, and Andhra Pradesh, recorded significant declines in their customer bases following the tariff hikes.

Growth in Wireline Segment

Interestingly, while mobile subscriptions witnessed a drop, the wireline (fixed-line) connections segment experienced a 1% growth, increasing to 35.56 million in July from 35.11 million in June. Reliance Jio led the charge in this sector, adding over 480,000 new fixed-line subscribers.

Bharti Airtel also saw significant growth in this space, with over 136,000 new fixed-line subscribers. Other contributors to the segment included VMIPL (12,413), Vodafone Idea (11,375), Tata Teleservices (3,971), and Quadrant (12) new fixed-line customers. In stark contrast, BSNL was the largest loser in the wireline segment, shedding 134,000 fixed-line customers, while its sister concern lost 56,454 customers.

Broadband Customer Base on the Rise

On a more positive note, India's broadband customer base saw an increase, rising to 946.19 million at the end of July from 940.75 million in June. This growth reflects the increasing demand for high-speed internet across the country.

The top five broadband service providers continue to dominate the market, accounting for 98.42% of the total broadband connections. Leading the pack is Reliance Jio, with 488.63 million broadband subscribers, followed by Airtel with 284.03 million, Vodafone Idea with 126.72 million, BSNL with 29.61 million, and Atria Convergence with 2.26 million.

Machine-to-Machine (M2M) Connectivity

In the machine-to-machine (M2M) cellular mobile connections segment, Bharti Airtel led the market with 28.46 million subscribers, accounting for 53.02% of the market share. Airtel was followed by Vodafone Idea with 27.71%, Reliance Jio with 13.68%, and BSNL with a 5.58% market share.

Conclusion: A Changing Telecom Landscape

The July telecom data reveals a shifting landscape, where the major private players Reliance Jio, Bharti Airtel, and Vodafone Idea are grappling with customer losses due to tariff hikes, while BSNL has managed to gain ground. As the demand for fixed-line services and broadband continues to grow, India's telecom industry is undergoing a significant transformation. With the rise of M2M connections and increasing competition in the wireline and broadband sectors, telecom players are now focusing on adapting their services to meet the evolving needs of both mobile and fixed-line users.