Telecom Regulatory Authority of India (TRAI) Reports: Key Insights into India's Telecom Sector

The Telecom Regulatory Authority of India (TRAI) has released several key reports detailing the performance of India's telecom sector in the first quarter of financial year 2024-25 (Q1FY25). These reports provide valuable insights into subscriber growth, revenue trends, and technological advancements.

1. Subscriber Growth and Market Share

According to TRAI, the total wireless subscriber base increased by 7 million during Q1FY25, reaching 1,165.49 million subscribers. This represents a 0.60% growth over the previous quarter and a 1.88% year-on-year (Y-o-Y) increase. The market share of private operators remained high at 91.70%, while PSU operators held a 8.30% market share.

Reliance Jio and Bharti Airtel are expected to report at least a 10% sequential growth in their mobile businesses during Q1FY25, driven by subscriber additions and higher data usage. Vodafone Idea (Vi), however, continues to experience subscriber loss, with a potential decline of 2 million net subscribers.

2. Revenue Trends and ARPU Growth

The average revenue per user (ARPU) for wireless services increased from Rs.115.71 in 2021-22 to Rs.138.75 in 2022-23, showing a yearly growth rate of 19.91%. However, ARPU growth is expected to remain modest in the coming quarters due to the impact of recent tariff hikes and the ongoing shift towards 4G/5G technologies.

Analysts predict that Jio's ARPU will see a 17% increase in the next 12 months, driven by upgrades to 5G and higher data usage. Airtel is also expected to see significant ARPU growth, although the exact figures are not yet clear.

3. DTH Subscriber Base and Trends

The pay DTH subscriber base has faced significant challenges, with a decline of 3.28 million active subscribers in FY24. Despite major sporting events like the IPL and ICC Men's Cricket World Cup, DTH operators have struggled due to the availability of free streaming services and price hikes.

As of Q1FY25, the pay DTH subscriber base stood at 62.17 million, showing a slight increase from the previous quarter. However, this growth is largely attributed to the resilience of DTH services rather than significant new subscriber additions.

4. Internet Subscribers and Data Usage

The number of internet subscribers in India increased from 824.29 million at the end of March 2022 to 881.25 million at the end of March 2023, registering a yearly growth rate of 6.83%. The broadband subscriber base saw a significant increase from 788.30 million to 846.57 million during the same period.

Wireless data usage surged by 16.44% in FY23, reaching 160,054 petabytes (PB). This growth is largely attributed to the increasing adoption of 4G and 5G technologies, which have significantly enhanced data consumption patterns in India.

The total revenue from wireless data usage increased by 21.63% in FY23, reaching Rs. 1,74,144 crore. This indicates a robust growth in the data-driven segment of India's telecom sector.

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