Ahmedabad: The telecom sector in Gujarat faced a major shock during Sep to Nov 2024 period, losing a staggering 10.39 lakh subscribers amid price hikes by private telecom players, according to the latest Telecom Subscriptions Report issued by the Telecom Regulatory Authority of India (TRAI). All major telecom service providers implemented tariff hikes ranging from 10% to 27%, leaving subscribers struggling to manage their piling monthly costs of maintaining multiple connections.
Gujarat’s tele-density, for the first time in years, plunged to 89.7%, according to the report.
As of Nov 30, 2024, Gujarat was home to 6.48 crore subscribers, down from 6.51 crore in Oct. In Nov alone, the state lost some 3.01 lakh subscribers. Of these, Vodafone Idea lost 1.49 lakh subscribers, whereas Reliance Jio lost 1.12 lakh subscribers. Even Bharti Airtel lost some 44,210 subscribers. BSNL was the only gainer, adding some 5,758 subscribers.
To attract more subscribers and regain market share, BSNL launched a series of initiatives, including spam blockers, automated sim kiosks, and direct-to-device services, due to which the company gained some subscribers, sources said.
“Rising tariffs have shaken up subscriber choices, pushing some users toward BSNL — the only operator yet to raise rates. At the same time, the dip in subscriptions signals a shift in consumer habits, especially among dual-sim users. With costs climbing, many urban customers are ditching their second sim, which was primarily used for budget-friendly data, to streamline expenses,” said a telecom industry source on condition of anonymity.
A couple of other reasons include the discontinuation of extra benefits for recharges and a reduction in retailer incentives. Previously, certain telecom providers offered special perks to users who recharged immediately after their plan expired, enticing them to stay active. Since these offers were phased out in Sep, many users chose not to renew their plans. Additionally, retailers, who once earned attractive margins on sim sales and recharges, have seen a dip in commissions. With lower incentives, they are no longer as proactive in pushing new connections, contributing further to the slowdown in subscriber growth.
“The subscriber dip isn’t just about tariff hikes — it’s also about changing industry dynamics. Many users held off on recharges after telecom companies scrapped extra benefits for immediate renewals. At the same time, retailers, who earlier had strong incentives to sell sims, have seen their margins shrink. With less to gain, they’re not as keen on pushing new connections, which has impacted subscriber numbers,” said a telecom industry expert on condition of anonymity.