Motilal Oswal: India Telecom Industry Sees Limited Recovery From Lockdown; MBB Subscribers Additions Turn Positive
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Motilal Oswal Report
The Telecom Regulatory Authority of India (TRAI) has released subscriber data for May 2020.
Following sharp decline in the subscriber base, the partial lifting of the lockdown led to limited recovery. It remains to be seen whether subscribers will have returned to prior levels in June 2020 or the market will have seen permanent 3% consolidation.
Here are the key highlights:
Industry gross subscribers shrank by 5.6 million month on month to 1.14 billion in May 2020 (versus 8.2 million loss in April 2020).
Bharti Airtel Ltd. /Vodafone Idea Ltd. each lost 4.7 million, while Reliance Jio added 3.7 million subscribers.
On the other hand, the industry recovered, albeit slowly, by 2.9 million active subscribers (after a steep drop of 31.2 million was posted in April 2020).
It reached 960.8 million (up 0.3% MoM), led by 6.2 million additions by RJio and languishing subscribers for Bharti Airtel /Vodafone declining by 0.2 million/2.8 million.
This reflects the subscribers are yet to recover from the impact in April 2020.
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