A Slowdown and Market Consolidation
The Indian telecom market witnessed a slowdown in mobile number portability (MNP) towards the end of 2023, with the top two operators, Bharti Airtel and Reliance Jio Infocomm, consolidating their positions.
In February 2024, the number of portability requests reached 11.5 million, the lowest figure since June 2023. This indicates a decrease in subscriber churn as the leading players strengthened their hold on the market.
Despite the overall slowdown, Bharti Airtel and Reliance Jio continued to add millions of customers. In contrast, Vodafone Idea lost over a million subscribers per month during the financial year 2023-24 (FY24). This decline is attributed to limited capital expenditure for service improvement.
Vodafone Idea, however, announced plans to raise funds through a share sale starting in March 2024. The company intends to utilize some of the proceeds for fresh investments in network infrastructure and 5G rollout.
The average revenue per user (ARPU) in India remains significantly lower compared to other markets like China. This suggests potential for growth in the Indian telecom sector as operators focus on increasing ARPU through improved services and value-added offerings.
Overall, the Indian telecom market is witnessing consolidation with the top players gaining market share. While MNP requests have declined, the focus has shifted towards improving network quality and increasing ARPU to drive future growth.