Vodafone Idea 4G Subscribers Rise Amidst Falling ARPU

Vodafone Idea (Vi) has been on the run trying to improve its average revenue per user (ARPU) figure for quite a while to maximise its earnings. The telco has reported an ARPU of Rs 104 in Q1 FY22 (April – June 2021). In comparison, the telco had an ARPU of Rs 114 in the same period last year. So there’s an ARPU drop of Rs 10 in one year for Vi. Interestingly, during the same period, Vi’s total number of 4G subscribers increased.

• Make Telecom Talk My Trusted Source
• 
• 

In Q1 FY21, the telco had a total of 104.6 million 4G subscribers, and that number rose to 112.9 million in Q1 FY22. While it is a short gain in numbers, it is something that should help with increasing the ARPU in the short term. It is a little surprising to see the telco’s ARPU dip even after adding new 4G subscribers. Maybe the telco’s high paying customers are leaving the network, but then, who knows for sure.

Vodafone Idea Quarter-on-Quarter Losses Widen

Vodafone Idea (Vi) has been losing money since the time the merger happened. The telco is still yearning for profits, but in a tragic development, the telco’s QoQ loss has widened. Vi had posted a loss of Rs 6,985.1 crores in Q4 FY21. But that has increased to Rs 7,312.9 crores in Q1 FY22.

The increase of loss is directly in line with the dipping ARPU number, which is not surprising at all. However, after another quarter of losses, the telco’s cash reserve is just running out, and there is no lender who would possibly want to risk giving money to Vi right now.