Jio shines on active subscribers; Bharti mixed: IIFL Capital Services

22 Dec 2022 , 11:20 AM

The divergence in Bharti’s healthy 4G subscriber adds and weak overall active subscriber adds implies 2G sub losses — probably, indicative of rural/low-income segment stress. On the other hand, Bharti recently implemented a sharp price hike for its 2G pack in two circles. Considering the weakness in low-income segments, it remains to be seen whether it extends the same on a pan-India basis. SIM consolidation that may potentially follow a sharp tariff hike, may limit the extent of revenue gains.

Jio’s active adds strong; Bharti and Vi lost

On a reported basis, Jio added 1.41 mn mobile subscribers in October — better than 0.73 mn in September, but well below preceding months. Bharti’s 0.8 mn adds were the highest in recent months. Vi lost 3.51 mn subscribers in October versus 4.01 mn loss in September. On active subs, Jio fared much better at 4.9 mn, its highest in recent months as VLR ratio improved MoM from 91.9% to 92.8%. Vi (-0.47 mn) outperformed Bharti (-0.96 mn) on active sub loss, though Vi’s VLR ratio, at 86.2%, is well below Bharti’s 98.1%.

Bharti led on mobile BB adds

On mobile Broadband subscribers, Bharti saw 3.03 mn adds — the highest in recent months and ahead of Jio’s 1.41 mn. Vi’s 0.16 mn adds were similar to recent months. It seems to have fared better during the festive season. Divergence between Bharti’s healthy mobile broadband sub adds and weak overall subscriber adds — indicates its 2G sub base seems to have witnessed SIM consolidation to some extent; probably due to inflationary pressures.

Jio and Bharti continue trend on fixed BB

On fixed Broadband subscribers, Jio’s 0.29 mn adds and Bharti’s 0.14 mn adds were similar to recent monthly run-rate. BSNL has added subscribers in the past six months after having witnessed sustained decline. Jio’s and Bharti’s fixed BB is likely to get a fillip once they roll out 5G Fixed Wireless Access (FWA) over time.