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Wednesday, August 16, 2017

Reliance Jio pips rivals in race to sign up active users
KOLKATA: Reliance Jio Infocomm added as many as 4.3 million active subscribers in June, stealing a march over the three biggest incumbent telecom operators Bharti Airtel, Vodafone India and Idea Cellular, whose combined numbers during the month stood at a modest 1.3 million, said analysts.

“The top three operators’ active subscriber net adds slowed down to 1.3 million in June compared to 5.1 million net adds average in the past six months,” ICICI Securities said, analysing subscriber data for June put out by the Telecom Regulatory Authority of India.

Jio’s 4.3 million active subscriber additions, according to ‘visitor location register’ or VLR data in June, was well below the 8.7 million active customer adds clocked in May, indicating a slowing, which the company previously attributed to the limited number of 4G devices in the market. The VLR is a key metric reflecting the actual number of subscribers actively using mobile services on a network.

The company’s active subscriber base grew to 93 million in June, helping the Mukesh Ambani-run telco steadily increase its active subscriber market share by 40 basis points (0.4 percentage points) to 9.1% from 8.7% in May.

By contrast, market leader Bharti Airtel’s month-on-month gain was a modest 3 bps in active subscriber market share in June, while Vodafone India and Idea lost 9 bps and 2 bps on this metric respectively.

Brokerage Citi Research said Jio’s proportion of active subscribers remained higher in category B and C circles than the metros or A circles. Analysts at ICICI Securities backed Citi’s view, saying Jio’s active user base in “crucial metros and Category A circles was only 67.9% and 75% of its total subscribers” respectively.

Jio’s active subscribers in Delhi, Mumbai and Andhra Pradesh, it said, accounted for 67%, 68% and 75% of its total customers in these markets respectively. Its share of active subscribers in Maharashtra circle, however, was higher at 85%.

Not surprisingly, VLR data collated by Trai showed that about 76% of Jio’s total users are active subscribers, compared to 97% for the three biggest incumbent telcos.

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