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MNP Requests At 9-Month High Of 5.9 Million In Jan

The minimum recharge plans introduced by telecom operators Bharti Airtel and Vodafone Idea (VIL) to cut out low revenue subscribers and increase the base of high revenue customers are creating churn in the market. Mobile number portability (MNP) requests were at a 9-month high of 5.9 million in January, according to data shared by Telecom Regulatory Authority of India (TRAI).

Analysts suggest that subscribers are moving to their primary SIM card as a reaction to the minimum recharge plans. “MNP requests have been stable in metros, while A, B and C-circle markets have seen a sharp pick up. We expect requests to rise further in subsequent months as more subscribers choose their primary mobile operator,” writes Deepti Chaturvedi, Research analyst, CLSA in a note to investors.

Total number of MNP requests increased from 411.98 million at the end of December 2018 to 417.82 million at the end of January 2019. In April 2018, 6.73 million subscribers made MNP requests around the time Reliance Jio introduced a large number of new data bundle plans.

The highest number of requests have been received in Karnataka (about 39.18 million) followed by Tamil Nadu (about 35.56 million).

A study by UBS Evidence Labs has revealed that ownership of multiple SIM cards has declined from 1.33 times to 1.22 times in nine months across 13 cities, setting the stage for rationalization of competition. On a bright note for telcos, while Jio still leads on customer satisfaction in the metro cities, Bharti Airtel and VIL are catching up in the non-metros.

In what may be positive news for both Jio, Airtel and VIL, users are increasingly using Jio for voice calls, while Airtel and VIL users are using more data. Trai numbers show that active subscriber growth base of Jio slowed down in January, possibly hinting towards a slower adoption of the JioPhone.

“Bharti has managed to improve its share of smartphone users, with an increasing proportion of Airtel subscribers using its SIM for data. Jio’s momentum remains strong in both smartphone and JioPhone segment, although VIL’s share of smartphone subscribers is declining,” say UBS analysts Navin Killa and Amit Rustagi.

The UBS survey also suggests that multiple SIM ownership is declining, which should set the stage for gradual stabilization of competition and pricing environment. TRAI data suggests Bharti’s 4G net subscriber additions have picked up in past 3-4 months, while Jio has maintained a steady pace and VIL continues to struggle to build momentum.―Business Standard

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