We have entered 2023 with new hopes, but things appear difficult for the merged and once largest telecom operator Vodafone Idea (Vi). As we discussed, many transformations in the telecom sector will be finalised this year, and the long-struggling telco Vodafone Idea has a lot on its scale to deal with the changing times. Although the telco dragged instances without significant improvements from the last few years, we believe this year will differ. Those following the updates closely with the third largest telco know the situation of Vi.
The CEO talks about what should have been the industry tariffs but further lowers the tariffs in reality. But we see that investors and users are confused with the company’s stance as its actions differ from words. We are still trying to figure out what precisely the company is trying or conveying.
The year 2022 is filled with various investment news, but we believe there are no updates or real investments. Unless explicitly requested for clarification by SEBI, neither the company confirmed nor denied these market speculations.
We believe there is no update on the result of these advanced talks, which have floated in the market many times.
Vodafone Idea May Get Rs 20,000 Crore Investment from Amazon: Report
Vodafone Idea Confirms No Proposal from Amazon for Investment Yet
The company clarified only upon the intervention of SEBI for the news article about investments from Amazon; else, we can expect no comments on market speculations.
Subscribers
Vodafone Idea Got Port-in Interest from 10000 Users
How does the interest of users make any difference to anyone? Why does it even be considered without being materialised?
Subscriber loss in September
Vodafone Idea Loses 4 Million Wireless Users in September: TRAI
Subscriber loss in October 2022
Vodafone Idea Loses 3.5 Million Users in Oct 2022: TRAI Data
12 plus Month Subscriber Loss Streak
Vodafone Idea Continues Its 12 Month Long Subscriber Losing Streak: TRAI
So, the Vodafone Idea Got Port-in Interest from 10000 Users in July didn’t yield any positive outcomes. We can see from the report that Vi has lost subscribers for more than 12 months now. We also believe the subscriber loss will continue further.
Employee Churn
As per a report, even Vodafone Idea has faced Employee churn issues, which means employees are also concerned about the company’s future.
Vodafone Idea is Facing Employee Churn Issue on top of everything
Mounting Losses
Vodafone Idea Results Q2 FY23: ARPU at Rs 131, Loss at Rs 7592.5 Crore and More
It makes anyone wonder how the company is able to bear such a loss every quarter and how long it will take to recover the losses and make profits. If done so, at what tariffs? Definitely not as per the current Industry tariffs.
Lowering Tariffs Not Helping too
Vodafone Idea Complete List of Prepaid Plans: Check it
Vodafone Idea Lowers Postpaid Tariffs, Can it Help Reduce Subscriber Churn
Vodafone Idea is not only reducing tariffs in the prepaid segment indirectly but also in the postpaid segment. But none of these lowered tariffs is helping the telco fix the subscriber loss.
Priority Circles Losing Subscribers too
Vi always emphasized its priority circles, but as of date, even its priority circles are losing subscribers every month. In fact, Kerala is also losing subscribers.
How Vodafone Idea’s Priority Circles are Performing Based on Subscriber Data
Bankruptcy
Vodafone Idea is Trying to Save itself from Bankruptcy: Report
As per the above report, Vi is at the brim of bankruptcy and is just trying to save itself. But without any significant improvements, no short-term relief will help.
What’s Happening with Vodafone Idea
You can read about what’s happening with Vi briefly in the two articles below.
Vodafone Idea Survival in Question, What’s Happening
What is Happening with Vodafone Idea as 2022 Comes to an End
Conclusion
From what we believe, if we look at the past one year’s events, except for significant and essential updates, there are numerous updates about Tariff Hikes and Investments, but none materialised, at least by the end of the year 2022. The year 2022 also gave investors a new meaning for ‘Absolutely Committed.’
Looking at the reports above, we believe the timeline is filled with narratives far from reality. But, even if we keep every – ‘Might Be, Shall, To, Looking for’ kind of news of the past year at bay, Vodafone Idea has no more chances left as the due dates are approaching, and they need to perform or perish and have no opportunity to drag like yesteryear. So, only time will tell what will happen with Vodafone Idea this year, and the countdown has already started. So, the year 2023 looks more challenging for Vi unless the company brings some investment for real rather than the usual speculative kind of news.
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