Steady revenue growth – BHARTI/RJio gains from IDEA/others
The Telecom industry grew 2% QoQ (AGR including NLD) in 2QFY23, largely backed by ARPU growth, with flattish subscriber growth. This indicates: a) consolidation of dual SIM cards in the market, and b) upgrade to 4G services from 2G. BHARTI/RJio clocked a better growth at 4%/3% QoQ, while the same for IDEA stays flat. In terms of AGR market share, BHARTI/ RJio gained 70bp/40bp QoQ to 36%/41%, while the same for IDEA fell 25bp QoQ to 17%.
ARPU grew for all telcos
Industry AGR ARPU grew 2% QoQ. All the top three telcos have been the key beneficiary of a cleanup of low ARPU and inactive subscribers. BHARTI clocked a 3.5% ARPU growth, but saw a flattish subscriber base at 364m. The same for RJio grew 1.1%, with gross subscriber additions of 1.7% at the cost of IDEA. The latter saw a 2.8% QoQ growth in ARPU. However, its subscriber loss continued – down 2.9% QoQ, leading to flat AGR revenue.
Circle-wise AGR share – BHARTI and RJio gains in most circles
Of the total of 22 circles, BHARTI/RJio saw AGR market share improvements in 15/12 circles, with an average growth of 110bps/80bps. BHARTI/RJio lost 50bps/65bps QoQ AGR market share in seven/ten circles. This indicates that the market share gain from IDEA is secular across a wide number of circles.
– BHARTI’s focus on quality customers has played out well, with a faster growth in AGR market share in Metro and A circles than in B and C circles (up 80bp to 36.6%). The same for RJio/IDEA was flat at 39.3%/17.8% QoQ. In Delhi and Gujarat, BHARTI grew 12%/10% QoQ.
– In the B circle, BHARTI/RJio gained 50bp/70bp market share (to 32.6%/47.9%) from IDEA, which lost 20bp (to 15.8%) in 2QFY23.
– In the C circle, IDEA lost 25bp market share (to 3.6%), while RJio gained 30bp (to 52.6%). It saw a 100bp improvement in the Bihar circle. BHARTI saw a flat market share at 41.2%.