Mobile subscribers in Gujarat dropping the idea of multiple SIM usage 

Increase in data tariffs and incomes falling down have made people rethink on their usage of multiple SIM cards thus causing a decline in total mobile subscribers in Gujarat in May. According to the Telecom Subscription Report released by Telecom Regulatory Authority of India (TRAI), the total wireless subscriber base in Gujarat stood at 6.61 crore (precisely 6,61,77,911) in May.

The number of wireless subscribers declined by a whopping 6.38 lakh in the state against April, when subscribers stood at 6.68 crore. Telecom industry players attribute the decline to a tendency of people to migrate to a certain service provider and stopping use of multiple numbers.

“Several telecom users saw incomes reduce in May. Against this, telecom companies had already increased their tariffs earlier this year. To reduce costs, multiple SIM card users have shifted to using a single SIM and overall subscribers declined,” revealed industry sources. The trend is particularly visible among urban users, said the sources.

Gujarat also witnessed a decline in the total number of mobile subscribers in April, when there were 11.16 lakh fewer subscribers than in March.

The closing of retail outlets in May due to the lockdown was also one of the reasons as upgrades and renewals were stuck. “Offline retail was closed for most of May. As a result, renewals and upgrades in addition to obtaining new connections were stuck. Moreover, a number of migrant workers who returned to their home states also deactivated their Gujarat numbers to save on costs. These factors also caused a dip in subscribers,” said another industry source.

Key players including Bharti Airtel and Vodafone-Idea lost a large number of subscribers in the state. While Bharti Airtel’s subscriber base declined from 1.03 crore subscribers in April to 99.5 lakh in May, Vodafone-Idea lost some 4.06 lakh subscribers during the same period declining from 2.65 crore to 2.61 crore.

According to a report by Jefferies on Indian telecom services, Vodafone-Idea saw a sharp decline in its market share in metros and urban areas. “Given that these markets have higher dual-sim users, it seems subscribers are consolidating their usage/spends away from Vodafone-Idea in these markets,” the report states.