Vodafone Idea Cuts Lose 25000 Retail Partners to Reduce Costs: Report

Currently, Vi is in need of tariff hikes. Without hiking the tariffs, the telco won't be able to improve its average revneue per user (ARPU) figure. At Q4 FY23, Vi's ARPU was Rs 135, the lowest in the industry amongst the private telecom players. Vi would come under a severe need of cash once FY26 arrives and the moratorium period ends. 

Highlights

  • Vi has targetted the retailers who were giving it negative returns.
  • The move will help Vi in reducing overall costs and inch towards better revenue margins.
  • At a time like this, Vi needs to reduce costs and also look to add new subscribers, which hasn't happened for a long-time now. 

Follow Us

Vodafone Idea

Vodafone Idea (Vi), the only struggling private telecom player in India has reportedly broken ties with 25000 retail partners across India. The move is for reducing costs, said an ET Telecom report. More specifically, Vi has let go of partners who were a part of multi-brand retailer segment. These partners offered services of every telco to the customers. As per the report from ET, Vi around 4 to 5 lakh retail touch points across India. Most of these are actually multi-brand retailers.




Vi has targetted the retailers who were giving it negative returns. The move will help Vi in reducing overall costs and inch towards better revenue margins. Reliance Jio and Bharti Airtel have eaten up millions of Vi subscriber over the last few years. At a time like this, Vi needs to reduce costs and also look to add new subscribers, which hasn't happened for a long-time now.

Read More - Airtel Strengthens Market Share as Vodafone Idea Struggles with Limited Capex Investment

Currently, Vi is in need of tariff hikes. Without hiking the tariffs, the telco won't be able to improve its average revneue per user (ARPU) figure. At Q4 FY23, Vi's ARPU was Rs 135, the lowest in the industry amongst the private telecom players. Vi would come under a severe need of cash once FY26 arrives and the moratorium period ends.

At the same time, the telco also has to figure out ways to raise as much funds as possible. Recently, there was a report that said that Vi is going to propose a significant equity infusion of Rs 14000 crore. Out of the said amount, half is said to be pitched by the promoters - Vodafone UK and the Aditya Birla Group.

But ABG and Vodafone UK are only going to invest Rs 2000 crore as they have already infused over Rs 5000 crore in the recent past. As of now, the Indian government is the largest stakeholder in Vi.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

jayanthkillam :

Have you checked Rs.91 Plan on bsnl.

Is BSNL Rs 107 Plan the Best Value Short-Term Prepaid…

Samrat Gupta :

Well if you consider Jio's 2gb monthly plan then its more or less same. I was comparing the plans as…

Jio, Airtel, Vi Minimum Recharge to Keep Validity after Tariff…

TheAndroidFreak :

Let BSNL first focus on coverage in rest of India. Mumbai and Delhi have best coverage from Jio+Vi/Jio+Airtel on respective…

Is BSNL Rs 107 Plan the Best Value Short-Term Prepaid…

Faraz :

Can't find any of the 3 plan in MyJio.. Is it visible for only those who have 1.5 GB per…

Breaking: Jio Launches 5G Data Booster Plans, Starts at Rs…

Shivraj Roy :

There was big mtnl office in Andheri West Mumbai They demolished it a few months ago Idk what’s with that

BSNL will Handle MTNL Operations, but No Merger Yet: Report

Load More
Subscribe
Notify of
11 Comments
newest
oldest most voted
Inline Feedbacks
View all comments