With Vodafone Concept’s energetic subscriber loss moderating and internet addition of information subscribers in December 2024, the struggling telco is more likely to retain subscriber market share extra successfully, in response to analysts.
The telco, which is gearing up for business 5G launch this quarter, added 1.6 million knowledge prospects in December in opposition to a decline of 0.7 million customers within the earlier month, in response to month-to-month subscription knowledge launched by the Telecom Regulatory Authority of India (Trai) earlier this week.
In the identical month, rivals Bharti Airtel and Reliance Jio noticed flat motion in knowledge subscriber base, which analysts stated suggests normalisation of respective person base.
Throughout its December quarter earnings name, Vodafone Concept chief government Akshaya Moondra had famous that the telco is seeing momentum in knowledge subscriber addition as its expands and upgrades it 4G community, and prepares to launch its 5G providers.
Over the previous few months, the telco has been activating 5G websites in a phased method throughout key circles like Mumbai within the lead as much as business 5G launch this month beginning with Mumbai, Bengaluru and Delhi, adopted by different precedence circles.
Challenges for the cash-strapped telco, nevertheless, stay because it continued to see decline in energetic person base consistent with the development seen over the previous a number of months. The telco misplaced 0.4 million energetic customers in December as in comparison with 1.9 million the month earlier than indicating moderation in energetic subscriber loss.
“Moderation in VIL’s energetic subscriber loss and enchancment in knowledge subscriber addition in December might result in a slower tempo of market share accretion for Bharti and Jio sooner or later,” analysts from brokerage agency Jefferies stated in a report.
Jio’s market share rose to 40.42% in December (November: 40.15%) whereas Airtel was at 33.49% (November: 33.45%). Vodafone Concept’s subscriber market share additional shrunk month-on-month to 18.01% (November: 18.19%).
Whereas Jio and Vodafone Concept misplaced energetic subcribers, Airtel noticed internet addition (+1.7 million vs. – 3 million in November), analysts from Morgan Stanley stated of their report. Airtel’s energetic subscriber positive factors had been pushed by internet additions in circle A (2 million).
Consequently, Airtel’s share of energetic subscriber was up 36% (+17 foundation factors) whereas Jio and Vodafone Concept misplaced share at 42% (-14 foundation factors) and 16.6% (-3 foundation factors) respectively.
General, the telecom sector noticed slowdown in energetic subscriber loss, suggesting moderation in volatility and SIM consolidation within the sector publish the tariff hikes undertaken in final July analysts famous.
Based on knowledge launched by the sector regulator, energetic subscribers base, accounted for 92.15% of the full wi-fi subscribers and subscriber base fell 0.29 million in December to 1.06 billion.
Specialists additionally stated that whereas the vast majority of the affect on telco subscriber base because of July 2024 tariff hikes has been absorbed, some volatility nonetheless stays.
“The sector’s energetic subscribers moderated in December suggesting cool-off in volatility and sim consolidation within the sector publish the tariff hikes undertaken in July 2024. (However) knowledge subscriber base was flat month on month in December 2024, publish a pointy bounce in November 2024, suggesting some sim-consolidation,” Jefferies analysts stated.
General, the cellular subscribers base rose by 2.01 million to 1.15 billion in December, in response to knowledge launched by Trai. Development was led the city markets which noticed 2.75 million subscriber addition whereas rural subscriber base shrunk by 740, 000.
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