TRAI said the decline is due to large scale disconnections by some of the service providers.
Meanwhile, the share of urban subscribers has declined to 63.83 percent from 64.40 percent.
Share of rural subscribers has increased to 36.17 percent in July 2012.
The overall Teledensity in India reached 77.79 in July from 79.58 in June 2012.
Interestingly, mobile subscription in urban areas decreased to 603.03 million in July 2012 from 621.76 million in June.
Subscription in rural areas decreased to 341.79 million from 343.76 million.
The overall urban Teledensity has decreased from 169.03 to 163.66 and Rural Teledensity decreased from 40.66 to 40.40.
Wireless subscription in urban areas decreased from 597.59 million in June 2012 to 578.90 million in July 2012.
The wireless subscription in rural areas decreased from 336.51 million to 334.58 million.
The urban wireless Teledensity has decreased from 162.46 to 157.11 and rural Teledensity has decreased from 39.80 to 39.54.