Vodafone Idea Reports Decreased ARPU and Loss of 11.3 Million Customers in Q1 FY21
Vodafone Idea Limited released its reports for the Q1 of Financial Year 2021. Looking at the report, it seems like things didn’t go VIL’s way as much as the telco would have wanted. In its report, VIL highlighted that they…
Wow. Waiting for the lootafone to shutdown.
Looks like integration of 2 networks in North Indian states is like whole of India for them ignoring the South.
read Vodafone group annual report 2020 there is description of 200 million usd dollar infusion info for Vodafone idea
vodafone group view for VIL
Certainly not a good news for the telecom sector and people loosing jobs.
Multiple players should be there in the industry providing good services to the customers and healthy competition among each of them..
Customers will get Different options to choose among them.
Not a voda fan but certainly want them in the market, there are people in whose location voda gives good services and others are not so effective it happens Pan india vice versa.
Vodafone is pretty much doomed. Its promoters are not likely to infuse any capital into it, at least in the shorter term. One of the many root causes is poor customer service - they do not behave that well with customers, they mislead senior citizens into buying expensive postpaid plans, they activate postpaid plans on customers' numbers without their consent, and the list goes on. The second most important root cause is inability to change quickly - they did not upgrade their infrastructure rapidly even in 2018, that's 2 years after Jio started commercial operations! They were in denial that they had competition up until 2018-end. Airtel survived because they significantly upped their game. Today VIL is a sinking ship and IMHO Idea should've stayed a separate player.
very small amnt in front of AGR ..
Well said, well summarised
From the financial results it seems voda idea is loosing cream profitable customers from its profitable circles.
They did massive tarrif hike in Nov last year and it's other competitors shown ARPU increase of upto 25% since then but voda idea grew by -5% at 114Rs.
It's 4G subsciber base reduced by 1mn. This is very bad indicator if you ask me. Instead it should be keep increasing even if company over all health is not good.
Cash crunch is pushing back voda idea in investing in capacity in its profitable circles...Actually since beginning of its merger in 2018 it clearly stated that they want to selectively deploy 4g in profitable areas only which has backfired them badly. This is the reason it is loosing its profitable subscibers in circles like UP, KARNATAKA, WEST BENGAL, MAHARASHTRA &GOA, KERELA, ANDHRAPRADESH, DELHI AND MUMBAI. Add to that negative sentiments of employees is giving poor service to customers. So new prospective customers are shying away from it. Add to it massive media coverage on its poor health.
Promoters are just sitting on the sidelines watching it's entity strip down financially.
Vodafone PLC clearly stated even in its last qtrly results that they have written off its india entity and its value stands at zero. So if any one thinks that they will invest further to save company is in fool's paradise. Govt has done its part of giving 20 yrs timeline and now it is upto court to decide on that but major issue is not AGR now but it is LOSS OF CUSTOMERS. This will take company curtains down shortly.
I don't know what they meant by integration of network. At least here in Bihar (talking about rural area) they shut down Vodafone's tower without increasing the capacity of Idea's tower. Now, we don't get proper signal even on 2G mode and their 3G, 4G struggles at less than 1 mbps speed with HIGH ping. Also, during peak hours no one can open google.com.
I don't know why a few people still use Vodafone-Idea here.
I know a few may get good services but I am sure they are from different circles or districts.
Not scaring vil customers but as per results it looks unlikely that company will survive and any external investor will come in.
While court may grant time of 10 to 15 yrs to repay agr and it will cut losses to some extent by removing employees but still revenue loss will not let vil service all its debt due to customer churn
Hence my sencere advice to its customers to start porting out gradually ... You will suffer in terms of customers service and network if you stay long with vil
Result shows very ugly picture behind the walls of VIL.
ARPU and revenue down means, most people have abondoned VIL sim and jump to JIO/airtel for additional data usage during lockdown. and VIL still keeping them as active sim.
This celaerly shows by december actual VLR customer for VIL will be just 200 million. much lesser than pre-merger period.
after bank feeling heat of non -payment and converting long term loan to current liability, its Vendor like NOKIA/ZTE, who also stay away from this telco. SC already behind VIL to puch just next to bankruptcy.
VIL Future is fully dark within opaque walls of BIRLA and VODAFONE.
Customer numbers going down for Vodafone-Idea and not for Jio.
Jio is not disconnecting any sim even if you do not use it for years. That is the reason Jio has more number of customers. And this positive news gives it more customers.
Next thing is service. Jio has good service what I heard from others and experienced.
Vodafone Idea has 4G in the cities, not much in the village areas or on the roads. Jio has much better coverage although data speed has been reduced at many places, specially many cities. Airtel has competitive coverage and speed and hence next to Jio.
Self service app of Jio is great from the beginning. Prepaid recharges are queued up which is a great help. Idea app is not yet ready for this. Although they provide the facility, they completely mess it up once you do recharge. Current data per day is increased, your future plans data gets reduced. Airtel is good and it also provides plans for one year.
Voda idea results concall happened today. CEO Ravinder says they will arrange for ADEQUATE funds to infuse in the company after AGR verdict is clear in thier favour on Monday.
They will now focus on expanding 4G coverage to protect its customer base.
They say VODAFONE IDEA is here to stay.
Good then let's wait.
Great news! Greedy fraudsters Vodafone should die, because of its earlier bad karma!
Yes, this good news was bound to come after bad Q1 result.
But understand the way Vodafone doing business.
1) focus on Urban areas
2) focus on Metro and A circle.. out 10 cluster, 1 circle=1 cluster for Gujrat, Maharashtra and Mumbai . and 1 Cluster for weaka dn stong combitonation of AP+KAR, and KER+TN a,d DEL+RAJ, WB+KOL.
3) 4g expansion, service at own store only in these circles will be focused. They might shut down Postpaid in C Circle.
4) Funds comes will have prority like, serviceing current liability(recently moved from long term to current), then laying off employess and vendor dues, then any pending inetrgrationa and upgradation , then comes New urban areas then Rural, and lastly if something left, may be 50-100lakh will go for RnD and 5G testing.
5) Many circle inclusing all c category will have much more extra spectrum available to trade or will be sold off to to airtel/jio becuase of low subsciber base
6) Actual VLR base will be expected to 200million , with 30% still on 2G network,which they cant shutdown soon.
7) Idea brand will be spin-off to gain some Equity and make balance sheet right.
8) Fianlly, u can defiantely go for long term recharge after mondays result annouced.
my jio sim disconnected now. seems soon others will also get sims blocked for non-recharge.
Good to hear that. Here at my area everyone though it will not survive again from this stage(As Vodafone service became extremely bad now a days here). So most of the people ported to Jio or Airtel and Vodafone network became almost empty here.
LATEST UPDATE FROM BANGALORE:. vodafone idea removed 5mhz band 3 carrier deployed last year after merger. Now entire 4g is running on just 5mhz since two days instead of 10mhz earlier
Why vodafone, why r u doing this????
Are you planning to trade this spectrum for cash with Airtel or Jio??
But TBH, I am not too optimistic on this claim by company. They will need anything between 15 to 25k crore to sail through this year . So that sufficient money can be paid for Agr , improvment in network, bank payment and certain cash flows to operate. Generally tough questions are being asked during earning calls by reporters and it is always positive replies are given to insure they don't make a hue and cry next day in the media.
Not sure if anyone willing to infuse that kind of money with poor fundamentals of company. I may turn out to be wrong but let's see. Company loosing customers is major flaw in the game for any investor to jump in.
This is something very confusing. in karnataka VIL is always 2nd last or now last operator in term of Subsciber base.
VIL doesnt have band 40 nor 41 in karnataka.
How they can provide better service even if they refarm 900Mhz( 5Mhz) + 2100Mhz(5Mhz) and band 3(5mhz ,reduced from 10)
2G subsciber can be well handled with 8Mhz.
Problem is only few dense areas in banglore, otherwise with current, i should say Active VLR, base above spectrum 5+10+5+ 8(2g) is suffieceint in other cities and rural areas.
JIO and airtel are awalys in search of speadditional spectrum from other telco or govt aution.
VIL need cash and now chepaest and best option is sell of additinal spectrum, to pay and make company stable. otherise no outside investor is going to put money,
If not in karnataka, in most c and other circle u will see VIL either selling or sharing spectrum before october auction, and secondly ... In from SC, they say SECURITY for AGR due is spectrum, because bank BG not possible.
Ensure not insure. They're not LIC salesman, lol.
so I did bit of enquiry and understand that they are now using dynamic spectrum refarming on all sites. This allocates excess spectrum basis load on a particular site. Since bangalore is loosing customers hence load is begning to tepper off from most of its sites barring in CBD areas. Hence I am seeing only 5mhz in my area. Also I many never see band 8 or band 1 ever in my area of network load remain like this
I am sure voda idea management knows that before they raise tarrifs they should bolster their network otherwise they will loose more customers 5o competition. But irony is to bolster network they need tarrif hikes....
Dear Sudhakar I have no words for your imagination 😛 😉 🙂
BSNL 3G SPEED TODAY MORNING
Saket, whatever equity will come will have to be infused into network, else they will loose more customers. So first priority will be to pay dues and network upgradation. They have more than 56% 2G customer so they cannot shut 2g. Instead 3G will be shutdown to cut cost.
But yes lot of bold and drastic steps will be taken to save cost, this will be part of restructuring which they have indicated. Lot of non profitable circles and areas within profitable regions will see zero network . Network will be strictly available where there users. Rest of the places you will see no or only 2G network. Employee strength will come down to 5000 in few qtrs. Idea brand has no equity value left. May be promoters might exit shortly if they get some external investors.
Coming week is very crucial for vil. It is either make or break for company
are you a english teacher sachin LoL 😛 🙂
Who said they ignored south?