Vodafone Idea’s (Vi) average revenue per user (ARPU) has jumped to Rs 109 in Q2 FY22 from Rs 104 in Q1 FY22. This is not surprising though as the telco had removed the base Rs 49 plan which meant users had to shift to the Rs 79 plan. However, the increase in APRU didn’t result in a higher subscriber churn rate. The subscriber churn rate for the telco during Q2 FY22 was 2.9% as compared to 3.5% in the previous quarter.
Vodafone Idea Worked on Improving 4G Coverage
From 1,007 million Indian users in Q1 FY22, the telco improved its 4G network coverage in Q2 FY22 to 1,012 million users. While it is not a very big jump, improvement is a positive sign for the telco.
During the quarter, the telco’s active subscriber base was 235.7 million users out of its total subscribers which is 253 million users. The active subscribers dipped from 241.7 million users in the previous quarter to 235.7 million in this one.
However, the good thing is, the telco’s ARPU rose and it also added new 4G subscribers. Vodafone Idea had 112.9 million 4G subscribers in Q1 FY22. This number grew to 116.2 million in Q2 FY22.
This means that even though Vi’s active subscriber base declined, most of them would be legacy network users. The rise in ARPU and 4G subscribers is something that Vi would be very happy about.
If the telco can keep on improving its network coverage, it will start adding more 4G subscribers throughout India. Blended churn getting under 3% is something that will bring some relief to Vi. But in the medium-term, as tariff hikes kick in, the churn rate might again go above 3% which Vodafone Idea wouldn’t mind a lot as long as its ARPU is rising significantly and with that overall revenues rising too.
Despite the risen ARPU, Vodafone Idea is still quite far from where Jio and Airtel are.