Vodafone Idea Continues to Struggle as Subscriber Losses Persist

Vodafone Idea experiences a significant decline in wireless subscribers for the 26th consecutive month. Despite efforts to retain customers, the telco faces challenges and uncertainties for its future.

Highlights

  • Vodafone Idea loses 2,815,226 wireless subscribers in May 2023, marking the 26th month of decline.
  • Promised equity infusion post-government conversion yet to materialize, raising uncertainty.
  • Vodafone Idea delays 5G launch and seeks more time for implementation according to recent reports.

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Vodafone Idea Continues to Struggle as Subscriber Losses Persist

The Telecom Regulatory Authority of India (TRAI) released the latest Telecom Subscription Data on Tuesday, revealing a continued downtrend for Vodafone Idea. The telco experienced a significant decline, losing 2,815,226 wireless subscribers in May 2023. This marks the 26th consecutive month of decline for the telco, which has been struggling to retain its subscriber base for years now.




Also Read: Fading Connections: Vodafone Idea’s Two-Year Decline in Wireless Subscribers

Continuous Subscriber Decline

The overall wireless subscriber base in India witnessed a marginal decrease from 1,143.13 million at the end of April 2023 to 1,143.21 million at the end of May 2023. Within this, Vodafone Idea currently holds a subscriber base of 230,941,435.

Since April 2021, the company's customer count has steadily declined, dropping from 281,902,977 to 230,941,435 in May 2023. This decline comes despite the company implementing various measures, including indirectly reducing tariffs by giving more benefits to attract and retain subscribers and, in some instances, bundling more freebies to retain users.

The rural wireless subscriber count for Vodafone Idea also declined, with a reduction of 1,498,866 rural subscribers compared to the previous month. As of May 2023, the telco's rural subscriber count stands at 112,470,485.

Also Read: Vodafone Idea Loses Over 2 Million Wireless Subscribers, Continuing a 23-Month Streak: TRAI

All the Circles Witnessed Subscriber Loss

Data released by TRAI highlights the five circles in which Vodafone Idea experienced the highest loss of wireless subscribers as of May 2023. These circles are Uttar Pradesh East, Maharashtra and Goa, West Bengal, Gujarat, and Andhra Pradesh and Telangana. The circle-wise loss of subscribers is tabulated below.

Sl. NoCircle - ViSub Loss in MayVi May 2023 Wireless Sub base
1Andhra Pradesh & TS-173,14811,447,975
2Assam-43,2231,937,529
3Bihar-148,6338,133,798
4Delhi-137,28316,509,158
5Gujarat-203,46321,932,937
6Haryana-45,5907,254,897
7Himachal Pradesh-15,369442,699
8Jammu & Kashmir-18,207335,707
9Karnataka-91,6976,777,831
10Kerala-109,60914,245,870
11Kolkata-100,1545,686,855
12Madhya Pradesh-67,82816,943,923
13Maharashtra & Goa-318,08823,830,542
14Mumbai-103,31011,163,757
15North East-11,502917,433
16Odisha-15,7691,580,880
17Punjab-146,0586,957,971
18Rajasthan-160,1559,990,444
19Tamil Nadu-116,80816,340,816
20Uttar Pradesh East-391,31318,298,890
21Uttar Pradesh West-154,82616,182,069
22West Bengal-243,19314,029,454
Total Subscriber Base-2,815,226230,941,435

Additionally, the overall peak Visitor Location Register (VLR) in May 2023 for Vodafone Idea stood at 88.88 percent, and the industry's highest recorded figure is 100.09 percent.

With Vodafone Idea's continuous subscriber losses, rival telecom operators are capitalising on expanding their market share with 5G and upgraded 4G network experience. Vodafone Idea has been unable to reverse the declining trend and attract new subscribers. The telco is currently facing ongoing challenges, and there is uncertainty about the sustainability of its business model and its future prospects.

Also Read: Vodafone Idea 5G Expected to Be Launched in June: Report

Commitment of Promoters

The telco's promoters have promised equity infusion into the company post-government conversion of equity, but nothing has materialised so far. For many years, the company has been making promises of investments, but there has been no sign of progress to date.

Earlier reports indicated a 5G launch in June, as also reported by TelecomTalk, but as of now, there is no concrete announcement regarding the 5G launch. According to recent reports, now Vodafone Idea is seeking more time from the Government to launch 5G, as reported by TelecomTalk. In January, the UK-India trade body sought to expedite the process of equity conversion, and now that it's done, what's next?

Also Read: Government Keeping a Close Eye on Vodafone Idea’s Funding Delay: Report

Conclusion

The telco is reducing the validity of its Rs 99 validity talktime plan in a few circles from 28 days to 15 days while still retaining the denomination available for customers to recharge. Since the time TelecomTalk started tracking the subscriber losing streak, nothing has helped the telco stop the subscriber loss. Despite every move, there has never been a month in which Vodafone Idea gained overall subscribers. Only time will tell what lies ahead for the telecom operator.

Reported By

From Arts and Journalism background, Yashika closely monitors developments and updates in OTT Space.

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