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Highlights
- Vodafone Idea Limited (VIL), the third-largest telecom operator, is actually competing with BSNL (Bharat Sanchar Nigam Limited), and not Jio and Airtel.
- The private telcos including Jio and Airtel are already far too ahead, in revenues, customer base, 4G network, 5G rollout, and other things such as ARPU (average revenue per user) and more.
- The reason why we say that BSNL is the actual competition for Vi is that both the telcos have almost similar issues and are being helped by the government to make a comeback.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Vodafone Idea Limited (VIL), the third-largest telecom operator, is actually competing with BSNL (Bharat Sanchar Nigam Limited), and not Jio and Airtel. The private telcos including Jio and Airtel are already far too ahead, in revenues, customer base, 4G network, 5G rollout, and other things such as ARPU (average revenue per user) and more. The reason why we say that BSNL is the actual competition for Vi is that both the telcos have almost similar issues and are being helped by the government to make a comeback.
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While Vodafone Idea says that it is working on rolling out 5G, the real goal for the telecom operator is to meet and catch up with the 4G standards required to keep the customer satisfied. The same is being focused by BSNL as well. BSNL needed government help to make a comeback, and it has not been able to yet. The same is with Vodafone Idea. Vi is still trying to raise more money so that it can fuel its capex (capital expenditure) guidance.
The reason why Vi has not been able to grow its 4G/5G subscriber base rapidly is the absence of high-speed networks in most parts of India. Over the last year, while Vi has expanded the 4G and 5G population coverage by a strong margin, there is still the issue of rural areas presence, and being present as well as the competition in smaller towns.
Vi is doing decent in large markets, which are also its priority as people there have a better paying capacity. However, there is no competing with Jio and Airtel for Vi right now. Both Jio and Airtel have a strong cashflow and a much better EBITDA (earings before interest, tax, depreciation and amortisation) margins than Vi. That is why, Vi is actually trying to compete with BSNL in adding more 4G users, and not Jio and Airtel in reality.
