Bharti is making significant strides by expanding its market share across all circle categories. Meanwhile, Reliance Jio (RJio), despite losing some ground in the B/C circles, manages to retain its overall leadership position.
Both Bharti and RJio experienced AGR growth in the quarter, with gains of 4.1% and 2.1% QoQ, respectively.
In contrast, IDEA reported a more modest growth of 0.7% QoQ. This positive momentum propelled Bharti’s market share to 36.8% in the first quarter of FY24, reflecting a balanced expansion across all circle categories.
RJio, while maintaining its stronghold, saw its market share remain stable at 41.2% QoQ, despite experiencing a dip in B/C circles. Vodafone Idea Limited (VIL), on the other hand, continued to face challenges, as its market share dropped by 30 basis points QoQ to reach 16.1%.
Bharti’s growth trajectory is primarily attributed to an upswing in ARPU, signifying a higher willingness among its customers to spend on telecom services. Meanwhile, RJio’s growth was driven by consistent subscriber additions, which highlights its effective customer acquisition strategies.
According to the latest Telecom Sector Report released by Motilal Oswal Financial Services Ltd., the industry’s growth in the first quarter of FY24 witnessed a modest uptick of 2.3% quarter-on-quarter (QoQ) in terms of Adjusted Gross Revenue (AGR) including Non-Licensed Services (NLD).
This growth was primarily fueled by a 2.3% QoQ increase in Average Revenue Per User (ARPU), a departure from the average 3% QoQ growth seen over the previous eight quarters.
This muted subscriber growth underscores the ongoing consolidation of dual SIM cards within the market and the notable shift from 2G to 4G services, as subscribers continue to upgrade their connections.
The Telecom Sector Report also sheds light on the subscriber dynamics in the sector.
RJio maintains its lead in subscriber additions, as confirmed by the latest subscriber data released by the Telecom Regulatory Authority of India (TRAI) for June 2023.
Despite a somewhat subdued environment, RJio managed to gain 2.3 million subscribers, while Bharti added 1.4 million subscribers. In contrast, VIL faced subscriber losses, shedding 1.3 million subscribers due to churn.
The report reveals that while the telecom industry is undergoing significant shifts in terms of market share and subscriber additions, RJio’s strategic approach and substantial subscriber base have enabled it to retain its pole position in the sector. Bharti’s expansion across all circle categories positions it as a noteworthy contender in the market, underscoring the fierce competition and dynamic nature of the Indian telecom landscape.