Vodafone Idea Limited (VIL) saw a decent growth in its postpaid subscriber postpaid base over FY25. Postpaid is one segment which is continously and slowly growing for Vi over time. This is a good development for the company as postpaid user base is premium customers. These are what one would call high average revenue per user (ARPU) customers. Postpaid users not only stay for a long time, but also ensure a steady revenue flow for the company.
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Vodafone Idea's postpaid subscriber base grew from 23.9 million at the end of FY24 to 25.6 million at the end of FY25. The postpaid subscriber base kept on growing, even when there were tariff hikes. This shows that postpaid users are more accepting towards hike in tariffs. A nominal increase of Rs 50-100 on their bill per month would likely not make them want to leabve Vi's services. Further, it is important to note that postpaid SIMs are also taken by plenty of enterprises. This is because of multiple reasons such as wanting to distribute the SIM cards to employees, embedding them in IoT (Internet of Things) devices, and more.
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Vodafone Idea also has the industry's most premium postpaid plan. We will talk abou that at a later stage. It is true that Vi's 4G/5G subscriber base is not growing fast enough. The tariff hikes implemented in July 2024 was one of the hindrances for the telco to grow its user base. However, that's likely to change in the future as Vi is continously improving its network services throughout India. The company, in fact, incurred a capex of Rs 95.7 billion in FY25 compared to Rs 18.5 billion in FY24. This proves that the company is serious about improving network services.
