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Mobile Subscribers Yearwise comparision

Industry consolidation led to smaller operators losing 38 million subscribers between September 2016 and 2017, says Ind-Ra report

December 29, 2017

According to India Ratings and Research (Ind-Ra), smaller telecom operators in India lost 38 million subscribers on year on year basis during quarter ended September 2017. Most of these smaller operators had to sell their business at a much lowered valuations.

The report stated that the hastened consolidation benefited larger operators as subscriber market share (SMS) and revenue market share (RMS) of fringe operators has come to larger players. Operators including Aircel, Telenor, Sistema Shyam Teleservices Limited, Quadrant, Reliance Communications and Tata Teleservices Limited witnessed negative subscriber additions.

As per the report, Reliance Jio Infocomm Limited (RJIL) gained RMS of 13.9 per cent in quarter ended September 2017 where the top three operators accounted for 66.6 per cent of revenue market share. RJIL’s SMS increased by 10.2 per cent in the 12 months ended September 2017 standing at 11.7 per cent. Moreover, the industry average revenue per user declined sequentially by 11 per cent quarter-on-quarter basis and 35 per cent on year-on-year basis in September 2017.

India witnessed a marginal decrease in the overall teledensity from 93.71 per cent in August 2017 to 91.56 per cent in September 2017 owing to a decline in the urban subscriber base. Further, the report stated that the subscriber growth continued to remain negative in September 2017 for the third consecutive month.

Moreover, the industry witnessed an increase in the gross revenues by 6.6 per cent quarter on quarter to Rs 468 billion in the quarter ending September 2017. The adjusted gross revenues grew by 8.8 per cent quarter-on-quarter to Rs 307 billion in the quarter ending September 2017.


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