Telecom Giants See Massive Subscriber Losses in September 2024, While BSNL Gains Users
Nov 25, 2024, 14:18 IST
Telecom Giants See Massive Subscriber Losses in September 2024, While BSNL Gains Users
The biggest private telecom companies in India—Reliance Jio, Bharti Airtel, and Vodafone Idea—lost more than 10 million cell customers in September 2024. This was a big surprise. The Telecom Regulatory Authority of India (TRAI) says that the loss was spread among the three telecom companies that have been market leaders for a long time. At the same time, BSNL, which is run by the government, saw growth, adding about 8.5 lakh new mobile users during the same time period.
A big drop is coming for Reliance Jio.
Most of the damage was done to Reliance Jio, which has been India's biggest telco company for years. It's crazy that the company dropped 79.7 lakh subscribers just in September. Jio's overall number of wireless subscribers dropped to 46.37 crore (463 million), which is still a huge number, but it's a big drop compared to how fast it usually grows.
Jio and other private providers raised mobile rates by 10–27% in July 2024, which is thought to be the cause of the loss. Higher cell fees often make people rethink their plans or even switch providers, which is called "subscriber churn." Even so, Jio is still the market leader, but the sharp drop in users has made people wonder how the price hikes will affect keeping customers.
Sprint and Vodafone Idea Also Having Trouble
Two other big names in India's private mobile market, Airtel and Vodafone Idea (Vi), also lost subscribers, though not as many as Jio. The number of users on Bharti Airtel dropped by 14.3 lakh in September. It is now in second place, behind Jio. This caused the number of subscribers to drop to 38.34 crore. Vodafone Idea lost even more customers this month—a total of 15.5 lakh. The company has been facing tough competition and financial problems. Vodafone Idea now has 21.24 crore customers, even though the number of users they had dropped.
Both businesses, like Jio, raised their prices earlier in the year. Mobile data and calling plan prices going up may have made people less likely to join, since higher costs are making things more expensive. There is evidence that the price increases caused telecom companies to lose customers, even though they did help them make more money per user (ARPU).
Unexpected Gains for BSNL
The state-owned telecom company BSNL, on the other hand, has gone against the grain. At the end of September, BSNL added 8.5 lakh new mobile users, while its private competitors lost customers. With this rise, BSNL now has 9.18 crore wireless subscribers, which is a big number for a company that has had a hard time keeping up with the private players in terms of market share for a long time.
One big reason for BSNL's growth may be that it didn't raise mobile rates, which helped it keep customers who were looking for cheaper choices. Unlike the private sector, BSNL has kept its rates fixed, which makes it a good choice for people on a budget, especially those who live in rural or semi-urban areas.
What Happens When Tariffs Go Up
Price increases made by Jio, Airtel, and Vodafone Idea in July 2024 are likely the direct cause of the sharp drop in customers for these companies. Even though the higher prices helped them make more money per user, a lot of users either downgraded their plans, moved to other providers, or stopped paying for the service altogether.
The choice to raise prices was, of course, part of a plan for the whole industry to make more money. India's telecom industry has had a lot of problems over the years, such as more and more competition, high spectrum prices, and huge amounts of debt. The price increases were thought to be necessary to keep the business going, but the drop in subscribers right away shows that the road to recovery might be tougher than thought.
A Look Ahead
In India, the telecom market is expected to stay very competitive going forward. Reliance Jio, Bharti Airtel, and Vodafone Idea still have a lot of users, but they will need to deal with customer complaints about price increases and find ways to get back clients who they've lost. BSNL's steady growth says that the company could use its stable pricing strategy and support from the government to get a bigger share of the market.
It will be interesting to see how the big telecom companies balance the need to keep and get new people with the need to make money by raising prices. At this point, it's clear that BSNL has kept its customers, but the private players need to work hard to get back those who went.
A big drop is coming for Reliance Jio.
Most of the damage was done to Reliance Jio, which has been India's biggest telco company for years. It's crazy that the company dropped 79.7 lakh subscribers just in September. Jio's overall number of wireless subscribers dropped to 46.37 crore (463 million), which is still a huge number, but it's a big drop compared to how fast it usually grows.
Jio and other private providers raised mobile rates by 10–27% in July 2024, which is thought to be the cause of the loss. Higher cell fees often make people rethink their plans or even switch providers, which is called "subscriber churn." Even so, Jio is still the market leader, but the sharp drop in users has made people wonder how the price hikes will affect keeping customers.
Sprint and Vodafone Idea Also Having Trouble
Two other big names in India's private mobile market, Airtel and Vodafone Idea (Vi), also lost subscribers, though not as many as Jio. The number of users on Bharti Airtel dropped by 14.3 lakh in September. It is now in second place, behind Jio. This caused the number of subscribers to drop to 38.34 crore. Vodafone Idea lost even more customers this month—a total of 15.5 lakh. The company has been facing tough competition and financial problems. Vodafone Idea now has 21.24 crore customers, even though the number of users they had dropped.
Both businesses, like Jio, raised their prices earlier in the year. Mobile data and calling plan prices going up may have made people less likely to join, since higher costs are making things more expensive. There is evidence that the price increases caused telecom companies to lose customers, even though they did help them make more money per user (ARPU).
Unexpected Gains for BSNL
The state-owned telecom company BSNL, on the other hand, has gone against the grain. At the end of September, BSNL added 8.5 lakh new mobile users, while its private competitors lost customers. With this rise, BSNL now has 9.18 crore wireless subscribers, which is a big number for a company that has had a hard time keeping up with the private players in terms of market share for a long time.
One big reason for BSNL's growth may be that it didn't raise mobile rates, which helped it keep customers who were looking for cheaper choices. Unlike the private sector, BSNL has kept its rates fixed, which makes it a good choice for people on a budget, especially those who live in rural or semi-urban areas.
What Happens When Tariffs Go Up
Price increases made by Jio, Airtel, and Vodafone Idea in July 2024 are likely the direct cause of the sharp drop in customers for these companies. Even though the higher prices helped them make more money per user, a lot of users either downgraded their plans, moved to other providers, or stopped paying for the service altogether.
The choice to raise prices was, of course, part of a plan for the whole industry to make more money. India's telecom industry has had a lot of problems over the years, such as more and more competition, high spectrum prices, and huge amounts of debt. The price increases were thought to be necessary to keep the business going, but the drop in subscribers right away shows that the road to recovery might be tougher than thought.
A Look Ahead
In India, the telecom market is expected to stay very competitive going forward. Reliance Jio, Bharti Airtel, and Vodafone Idea still have a lot of users, but they will need to deal with customer complaints about price increases and find ways to get back clients who they've lost. BSNL's steady growth says that the company could use its stable pricing strategy and support from the government to get a bigger share of the market.
It will be interesting to see how the big telecom companies balance the need to keep and get new people with the need to make money by raising prices. At this point, it's clear that BSNL has kept its customers, but the private players need to work hard to get back those who went.