Vodafone Idea Active User Loss Highest in Six Months – 2023
According to data released on Tuesday by the Telecom Regulatory Authority of India, Vodafone Idea, India’s third-largest telecom provider, lost the most active subscribers in May since the previous six months.
The number of active users at the firm fell by 1.77 million during the month to 205.3 million. Analysts claim that decreased network expenditures without fundraising are to blame for Vodafone Idea’s loss of subscribers. For the 26th month, the telecom provider lost mobile users overall.
Its entire customer base decreased by 2.8 million mobile members during the month, bringing it to 230.94 million as of May’s conclusion.
Gujarat and Mumbai are to blame for the decline in Vodafone Idea’s VLR (visitor location register) base. Still, Maharashtra and Uttar Pradesh (East) reported a rise, according to brokerage Emkay Global.
The number of active subscribers—including those travelling on a mobile operator’s network—is displayed in the visitor location register. The Vodafone Idea VLR for the month was 88.8%.In contrast, Bharti Airtel and Reliance Jio saw increases in active customers of 2.4 million and 4.9 million, respectively.
Airtel and Jio saw increases in their total mobile customer bases of 1.3 million and 3 million. Jio had 436.31 million members, whilst Airtel had 372.31 million mobile users, all active throughout the month.
Airtel and Jio’s customer bases are expanding due to Vodafone Idea’s user attrition. The peak visitor location register, which displays the number of active subscribers, including those roaming on a mobile operator’s network, reveals that of the total 1.143 billion members, 1.043 billion, or 91.27%, were active. Seventy-three thousand eight hundred eleven more users were added to the overall subscriber base throughout the month.
For the 17th consecutive month, state-owned BSNL lost wireless subscribers. The corporation lost 1.5 million cellular members in May, bringing the total number of subscribers to 101.4 million.
Similarly, the number of active subscribers for the corporation decreased by about 500,000 to 52.7 million. Reliance Jio’s market share of wireless users rose from 37.9% in April to 38.17% at the end of May. In contrast, Vodafone Idea’s market share decreased to 20.2% from 20.45% in the wireless customers’ category, while Bharti Airtel’s market share increased to 32.57% from 32.45% in April.
In May, wireless customers increased across all service regions, except for Uttar Pradesh (East), Kerala, Gujarat, West Bengal, Punjab, Haryana, Kolkata, and Tamil Nadu, according to TRAI statistics.
The total number of mobile subscribers in urban areas decreased slightly to 626.26 million, whilst the subscriber base in rural regions increased to 516.95 million from 516.39 million.11.47 million customers filed their Mobile Number Portability (MNP) requests in May. This resulted in an increase in overall MNP requests from 830.65 million at the end of April to 842.12 million at the end of May, according to Trai.
According to Trai data, the three telecom companies increased their 4G customer base by 5.15 million. During the month, Vodafone Idea only added 0.01 million 4G subscribers.
According to experts, the change in the subscriber base from 2G as well as the loss of customers by Vodafone Idea, led to the growth of 4G subscribers for Airtel and Jio. Because Jio’s network was built entirely for 4G from the beginning, its 4G subscriber increase equals its overall additions.
Airtel increased its 4G subscriber base by 2.10 million, totalling 240.21 million. As of the end of May, there were 123.58 million 4G subscribers with Vodafone Idea. The three carriers’ combined 4G user base increased to around 800 million.
Currently, Jio is the top contender in the wireline market. The operator increased its subscriber base by 325,336 and now has a more than 9.7 million base.
At the end of May, Airtel had 7.4 million wireline subscribers, compared to 6.5 million for BSNL in the same market. BSNL lost 475,708 customers during the month in the wireline category, while Airtel gained 125,586.
The second-largest fixed line or wireline service provider, Airtel, overtook BSNL in March. Telephone and broadband internet services are offered over a network of cables in the wireline segment.
The Indian telecom market has seen massive changes over the past few years, with consolidations and fierce competition shaping the industry. Vodafone Idea, one of India’s leading telecom operators, has been battling aggressive competition and regulatory challenges. In a significant development, the company reported its highest active user loss in six months during the first half of 2023.
The company, formed by the merger of Vodafone India and Idea Cellular in 2018, has faced many challenges, ranging from financial stress due to massive debts and the burden of Adjusted Gross Revenue (AGR) dues to regulatory pressure.
In the first half of 2023, Vodafone Idea experienced a sharp decline in its active subscriber base.
According to the reports, the company lost around 6.5 million active users in six months. The drop represents a continuation of a downward trend that has persisted since the company’s inception.
The aggressive pricing strategy of rivals like Reliance Jio and Airtel has been a significant factor. These competitors have consistently offered lower-cost plans with more benefits, leading to Vodafone Idea’s subscribers shifting loyalties.
Several users have cited network quality as a concern, with complaints about poor connectivity and dropped calls becoming more frequent. This has further tarnished the brand’s reputation.
Vodafone Idea’s financial stress has also played a role in the decline. The inability to invest in infrastructure and marketing has led to a weaker market presence, affecting customer retention.
The company has been grappling with regulatory issues, notably the AGR dues, which have added to its financial woes. The Supreme Court’s verdict on the payment of AGR has added considerable strain to Vodafone Idea’s balance sheet.
Vodafone Idea has been active in the face of these challenges. The company has initiated several measures to curb the decline, including:
Launching new tariff plans to match competitors.
Investing in network improvements in critical areas.
Engaging in partnerships and collaborations to enhance offerings.
The six-month active user loss for Vodafone Idea in 2023 clearly indicates the struggles the company faces in a highly competitive market. The factors contributing to this loss are multifaceted, ranging from fierce competition to regulatory hurdles.
The future of Vodafone Idea is still being determined, and much depends on how the company adapts to the changing landscape and addresses its weaknesses. Continued innovation, customer focus, and strategic investments might pave the way for a potential recovery, but the road ahead seems challenging.
As the Indian telecom market continues to evolve, Vodafone Idea’s journey will be closely watched by industry stakeholders and the millions of subscribers who still rely on its services. The coming months will reveal whether the company can turn the tide or if the downward spiral will continue.
