Jio strong, Bharti healthy on 4G, Vi weak: IIFL Capital Services

30 Jun 2023 , 10:28 AM

Here are the key takeaways: 

• Jio saw the highest reported VLR (active) and mobile broadband net adds.
• Bharti’s overall subscriber adds were weak, though 4G adds were healthy. 
• Vi saw some MoM deterioration. 
• In the wake of its launch of attractively priced FTTH plans, Jio reported robust performance on fixed broadband sub adds for the second consecutive month. 
• Bharti’s performance was steady; muted overall net adds but healthy mobile BB (4G+5G adds) suggest continued pressure on low-ARPU segments. 

Analysts at IIFL Capital Services also noted that the industry’s rural subs have been flattish for many months.

JIO led on reported sub adds

On a reported basis, Jio added 3.04mn mobile subs in April — the same as in March. Bharti’s 0.08mn adds in April marked a sharp MoM slowdown from 1.04mn. Vi’s sub loss widened from 1.21mn to 2.99mn (the highest in recent months).

Jio led on active subs; Bharti below recent monthly average

On active subs, Jio added 4.68mn in April versus 4.95mn in March. Bharti added 0.73mn in April, below its recent monthly average. Vi’s 0.83mn loss was similar to recent months, but significantly below the 2.99mn reported sub loss — suggesting that Vi cleaned up its sub base. As of end-April, Jio/Bharti/Vi had active sub base of 407mn/370mn/207mn, respectively.

Bharti and Jio’s mobile broadband subs healthy, despite rise in smartphone prices

On mobile broadband subs, Bharti saw 2.33mn adds in April, similar to recent monthly average but below JIO’s 3.04mn. On the other hand, Vi lost 1.25mn — the highest in recent months. Considering the steep hike in smartphone prices (especially entry level), the above numbers are healthy.

Jio’s FTTH plan likely to have accelerated fixed broadband subs

At 0.32mn, Jio’s adds on fixed broadband subs remained elevated for the second- consecutive month. FTTH plan at Rs. 198/month (launched in March) is likely to have played a role. Bharti’s 0.13mn adds were steady. BSNL saw modest 0.03mn adds. Jio/Bharti/BSNL had 8.65mn/6.25mn/3.63mn fixed BB sub base respectively, as of end-April.