Jio and Airtel’s active or `VLR’ mobile user base in June were almost identical at 310 million and 311 million respectively. But recent investor disclosures by both telcos show Jio’s base of paying mobile users at 397 million was 28% higher than its June base of active users, while in Airtel’s case, it was 10% lower at 280 million.
The VLR or `visitor location register’ is a key metric reflecting the actual number of users actively using a mobile network.
“Who are these 87 million Jio subscribers who are recharging their SIMs regularly, but are not connected to Jio’s network,” said Kotak Institutional Equities in a note, analysing June subscriber data put out by the Telecom Regulatory Authority of India (Trai) and recent investor disclosures by the telco.
The brokerage said Trai data shows “Jio has a very high number of only sometimes-on SIM (users) on its network, which is particularly intriguing as Jio SIMs work only in the primary slot, even in dual-SIM mobile devices.
Kotak added that while users of “dongle SIMs do have this sometimes-on characteristic,” that is not the case with folks using SIMs in their handset as most mobile connections are generally always on.
Analysts are particularly intrigued by “the vast differential” between the revenue-earning subscriber base versus the active user base of India’s top two telcos.
“How does Bharti end up with a VLR (or active user) base that is 10% higher than its paying consumer base, while Jio has a VLR base that is 28% lower than its paying consumer base,” wonders Kotak in a note seen by ET.
The brokerage added that it’s “unable to comprehend why Jio’s subscriber base would exhibit (so) much different behavior than Bharti’s subscriber base”.
Trai’s VLR data for June indicated that 98.14% of Airtel’s users were active, a full was 20 percentage points higher than Jio’s active user base at 78.15%.
Airtel had added 3.7 million active mobile users in June, wresting the top spot on this score from Jio, which lost 2.1 million active subscribers.
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6 Comments on this Story
Shailendra Singh19 days ago
A large user segment uses Jio as a back-up SIM or a SIM only for data. That could be the reason why there is a large capacity of Jio users Inactive. I thinknour measurement of Inactive is related to voice.
Nikesh20 days ago
Telecom company market valuation is determined by ARPU and not by their base number. Reliance is not a fool. If it remove non active no itâ s ARPU would jump by 20 percent. This will be liked by market and investor. And in the article it is stated that jio revenue earning subscriber is more that active and for Bharti is is less. So for both two figures are inconsistent . Why. Ambani want fat cheque. But bharti is not. Why then this difference. . Is it that when bharti figure differ it is ok but if jio number differ it is fraud. Come out from this mentality. Any way what one think about this is not important. Ultimately market is king.
Vikas Rander20 days ago
Jio has kept the number high as they need to get the fat cheuqe.
AA looted Chiness and MA is looting Amercians . I like Ambani's - They never loot Indians.