Winning Bizness Desk

Mumbai. India’s three leading telecom operators—Reliance Jio, Bharti Airtel, and Vodafone Idea—are facing a significant setback after raising mobile tariffs in June 2024. The price hike, implemented shortly after the Lok Sabha elections, has resulted in a steady decline in subscribers for the third consecutive month. According to data from the Telecom Regulatory Authority of India (TRAI), Reliance Jio has suffered the largest loss, with nearly 79 lakh customers leaving its network in September 2024.

Sharp Decline in Jio’s Subscriber Base

TRAI’s data for September 2024 reveals that Reliance Jio’s subscriber count fell by 7.9 million (79 lakh) compared to the previous month. In August 2024, Jio had 471.7 million (47.17 crore) users, which dropped to 463.7 million (46.37 crore) in September. This marks a significant hit for Mukesh Ambani’s telecom giant, which is usually the leader in subscriber growth.

Vodafone Idea and Airtel Also Affected

Vodafone Idea, India’s third-largest telecom operator, faced the second-highest subscriber loss in September. Its user base declined by 1.5 million (15 lakh), dropping from 214 million (21.40 crore) in August to 212.4 million (21.24 crore) in September. Similarly, Bharti Airtel, the second-largest operator, lost 1.4 million (14 lakh) subscribers in the same period. Its total subscriber base fell from 384.8 million (38.48 crore) in August to 383.4 million (38.34 crore) in September.

BSNL Gains Subscribers Amid Private Sector Losses

While private telecom companies are losing customers, government-run BSNL has experienced subscriber growth. In September 2024, BSNL added 8.49 lakh wireless subscribers, bringing its total user base to 91.8 million (9.18 crore). This is a notable achievement for BSNL, which did not increase its tariffs like its private competitors.

Impact of Tariff Hikes

The loss in subscribers for Reliance Jio, Airtel, and Vodafone Idea is largely attributed to their decision to raise mobile tariffs by 10–21% in late June 2024. These price hikes took effect in July and have made services less affordable for many users. Meanwhile, BSNL, which kept its tariffs unchanged, has seen a steady increase in its subscriber base over the last three months. So we can say that the tariff hike strategy has backfired for India’s top private telecom companies, leading to a loss of over 1 crore subscribers collectively in September alone. As BSNL capitalizes on the situation by offering stable pricing, it serves as a reminder of the importance of affordability in retaining customers in the highly competitive telecom market.