Anil Ambani led Reliance Communications which recently forcefully migrated its CDMA customers to 4G network and then shut down their CDMA network to use the spectrum for 4G services, has suffered an overall fall in subscriber base of around 5 million customers during the 4G upgrade since April this year till present date (including both CDMA and GSM).
Our sources who are working with the Reliance ADAG firm shared with us that ‘RCOM has lost a large number CDMA customers as they choose to not upgrade their connection to our 4G network and opted rival networks through MNP’. Most CDMA subscribers though upgraded to RCom 4G through easy SIM swap under the promise of continuing of same tariff plans.
In circles like, Andhra Pradesh, UP East, UP West, Maharashtra and Bihar where RCom had large CDMA subscriber base, the company observed erosion in subscriber base. While in metro markets like Kolkata and Mumbai it was very nominal compared to those circles.
According to latest data shared by AUSPI , RCom which had 103 million wireless subscribers (GSM+CDMA) in April is now down by 5 million and has close to 98 million wireless customers on its network. In GSM category, Rcom performed well which helped them to add few million customers on their wireless network. However, we’re expecting RCom subscriber base might fall further as the service quality deteriorated in last few months coupled with lack of clarity on 4G tariffs as the company has decided to not reduce charges in sync with the incumbents.
Also, most of the CDMA customers who faced several issues during the migration process might leave the network through MNP once they cross 90 days lock in period as the company revoked old plans and failed to offer 10 GB promised data to CDMA customers as part of one time benefit.
On the other hand, RCom is a step away to sign deal with Maxis led Aircel to merge wireless business to create the 3rd largest telecom operator. Also the company is in final stages to close the merger with pure play CDMA operator MTS.