Vodafone Idea 4G User Additions Evoke Mixed Response from Analysts

Vodafone Idea 4G
Vodafone Idea, the third largest operator in India added 18 lakhs new 4G users in June, with the additions generating mixed responses from the analysts. According to the data released by the Telecom Regulatory Authority of India (Trai) on Monday, Vodafone Idea 4G user base touched 12.14 crores in June. In the previous month, the Trai data highlights that the operator had 11.96 crores 4G users, translating to an 18 lakh month-on-month increase. The additions recorded by the third largest operator in India are notable as Vodafone Idea in the previous months recorded a dip in its 4G user base.

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Vodafone Idea 4G User Additions “Look Good” Says Analyst

Motilal Oswal Financial Services, an Indian diversified financial services firm, on Tuesday in a note highlighted that the 4G users in India now account for 78% of the total active users in the country.

“Additions of 1.8m for VIL (Vodafone Idea) look good after the fall in the preceding two months, but we will remain watchful to see if it is sustainable,” Motilal Oswal said in its note.

However, ICICI Securities, a subsidiary of ICICI Bank in a note on Monday said that the 4G user additions recorded by Vodafone Idea in June is “disappointing.” The firm highlighted that over 1.2 crore users across India submitted requests for mobile number portability (MNP), with the numbers suggesting that Vodafone Idea “may be losing quality customers through the MNP route.”

It has to be noted that Vodafone Idea recorded its peak 4G user base of 12.36 crores in March, with the operator losing around 40 lakh 4G users in the following two month period.

Ravinder Takkar, chief executive officer at Vodafone Idea in the first-quarter earnings call on August 16, 2021, said that moving users to 4G is a “key focus area” for the operator.