Motilal Oswal - MOSL: Morning India (31/December/19): Telecom (Reversal in subscriber addition trend)

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MOSL: Morning India (31/December/19): Telecom (Reversal in subscriber addition trend)

MOrning India (31/December/19): Telecom (Reversal in subscriber addition trend)

Today’s top research idea

Telecom: Reversal in subscriber addition trend

After 10 months of weakness, the telecom industry expanded in Oct'19, with gross subscriber addition of 9.7m MoM to reach 1,183m; active subscriber addition swelled 20.3m to 981m.
In Oct'19, RJio launched its IUC plans, which supported active/MBB subscriber run-rate for both Bharti and VIL. However, RJio's pace of subscriber addition still reflects healthy addition. Further, RJio has announced plans in the month-end; therefore, full-month benefit for Bharti/VIL should reflect in Nov'19.
RJio has added 9.1m gross subscribers. Since Feb'19, RJio's active subscribers have made up 70% of gross subs; however, in Oct'19, it is 1.5x.
Bharti has reversed its declining subscriber trend - the company added 0.1m gross subscribers in Oct'19; it also added healthy 6.8m active subscribers to reach 310m. It has regained its top position in active subscriber market share.
On the other hand, VIL added meager 0.2m gross subscribers. The pace of active subscriber churn has reduced, but remained negative with 0.7m loss, reaching 302m. VIL has the highest market share of 31.5% in gross subscribers; however, RJio is inching toward the top spot with market share of 30.8%.
Broadband subscriber adds stood at 18.6m in Oct'19 (+9.3m in Sep'19) to reach 624m, forming 63.6% (+60bp MoM) of total active subscribers in the market. VIL/Bharti saw strong MBB adds of 3.6m/5m, which could be attributed to RJio's IUC plan launch.

Piping hot news

RIL gears up to take on Amazon, Flipkart with JioMart launch

Billionaire Mukesh Ambani took the first step to challenge global e-commerce giants Amazon and Walmart in India’s fast-growing market with the soft launch of his “new commerce" venture. Reliance Retail Ltd, the retail arm of Reliance Industries Ltd, on Monday began sending invites to Jio telecom users for registering on the new venture named JioMart.

31/12/2019 1 EN

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MOSL: Morning India (31/December/19): Telecom (Reversal in subscriber addition trend)

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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