India's telecom sector recorded the addition of 2.7 million active mobile subscribers in June 2025, continuing its growth trajectory after a strong showing of 7.3 million additions in May 2025. According to global investment banking firm Jefferies, the growth in June was primarily driven by Metro and A Circles, which collectively added 3.9 million subscribers, offsetting losses in B and C Circles.

Reliance Jio Continues Its Dominance

Reliance Jio led the active user additions with 2.4 million new subscribers, marking the fourth consecutive month of outperformance. With this gain, Jio expanded its active subscriber market share by 130 basis points, reaching 43%, further cementing its position as the top telecom operator in the country.

Bharti Airtel followed with 1.2 million additions, performing strongly in several strategic regions. On the other hand, Vodafone Idea (Vi) and Bharat Sanchar Nigam Limited (BSNL) witnessed continued user losses, with Vi losing 2,17,816 users and BSNL losing 3,05,766 users during the same period.

Despite Vi’s negative user growth, the company reported an increase in its 4G user base by 0.7 million in June, after adding 1.0 million 4G users in May, indicating gradual improvement in its data-focused subscriber segment.

Circle-Wise Trends: Metro and A Circles Lead

A deeper analysis of the circle-wise trends showed that Jio recorded gains across Metro, A, and B Circles, while experiencing subscriber loss in C Circles, possibly due to limited network penetration or competitive pricing dynamics in those areas.

Bharti Airtel gained subscribers in key circles such as:

• Gujarat

• Maharashtra

• Mumbai

• West Bengal

However, Airtel’s performance was offset by losses in Bihar, Kerala, Rajasthan, and Uttar Pradesh (East), suggesting mixed regional performance and possible network saturation in those markets.

Meanwhile, the C Circles continued to reflect weakness, with both Jio and Airtel showing sluggish or negative additions, possibly hinting at market maturity or high competition from local operators in those geographies.

High Churn Rates and Rising Portability

A significant indicator of market churn is the Mobile Number Portability (MNP) metric, which remained high in June at approximately 14 million requests. This suggests that consumers are actively switching telecom providers, largely in response to tariff hikes, promotional schemes, and customer service differentials.

High MNP levels point to elevated churn, which could increase selling and general administrative (SG&A) expenses for telecom operators as they expend more resources to retain or attract subscribers.

Despite this, the telecom sector added 22.3 million new active users in the first half of 2025 (H1 2025), highlighting its underlying growth potential, particularly in urban areas and data-intensive user segments.

Operator-Wise Summary for June 2025

Strategic Implications and Industry Outlook

The performance in June reflects a resilient but competitive telecom market, where larger players are consolidating their position through network expansion, pricing strategies, and improved digital offerings. Jefferies’ analysis underlines the structural advantage enjoyed by Jio, as its low-cost plans, extensive network, and aggressive customer acquisition strategies continue to yield results.

On the other hand, Airtel’s regional strengths in states like Gujarat and Maharashtra suggest it is maintaining loyalty in mature circles, although it may need to address its performance in rural or price-sensitive markets.

Vodafone Idea, despite registering growth in its 4G base, continues to face financial and infrastructural challenges, which are affecting its ability to retain and attract new customers. Its decline is also reflected in decreasing ARPU (Average Revenue Per User) and rising subscriber churn.

BSNL, as a state-owned player, continues to lag behind, primarily due to delayed 4G rollout, limited service innovation, and weak customer acquisition programs.

Tariff Hikes and Their Role in Churn

The recent tariff hikes across operators, aimed at improving ARPU and profitability, are contributing to churn, as price-sensitive consumers seek better value or cheaper alternatives. This trend is likely to continue into Q3 2025, forcing telecom operators to balance revenue optimisation with subscriber retention.

Additionally, the rise in SG&A expenses—including higher costs for marketing, customer support, and loyalty programs—could impact bottom lines, especially for smaller or debt-laden operators.

Digital Push and 5G Outlook

With 5G rollouts expanding steadily across metros and Tier-1 cities, Jio and Airtel are both expected to capitalize on data growth, particularly from enterprise customers, gaming users, and video consumption segments. However, 5G uptake has remained modest among average consumers, with affordability and device compatibility still being constraints.

The overall user growth in H1 2025 suggests that data usage, urban demand, and smartphone penetration remain the primary growth drivers in India’s telecom landscape.

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