Indian telecom operator Vodafone Idea (Vi) is retaining more than 20 percent inactive subscribers, as only 154.7 million of its 197.2 million subscribers are active, according to an IIFL Capital report dated December 1, 2025. As per TRAI’s October 2025 data, Vodafone Idea lost 2,083,618 wireless subscribers—the worst decline in recent months, the report claims. This subscriber exodus comes despite the telco offering Hero, Super Hero, and NonStop Hero unlimited data packs nationwide.
In mobile broadband (4G/5G), Jio and Bharti Airtel added 2.7 million and 2 million subscribers respectively, while Vi lost 0.5 million subscribers in October. On an active subscriber basis, Jio led with 3.9 million additions, followed by Bharti’s 2.8 million. Vi lost 0.4 million active subscribers after adding 0.02 million in September, according to the report authored by Balaji Subramanian, Siddharth Zabak, and Yash Nandwani.
IIFL Capital said that of the 197.2 million users Vi reported for the June–September quarter, only 154.7 million are active and generating revenue. This could be the key reason why its average revenue per user (ARPU), voice minutes usage, and data consumption are significantly lower than those of private players Bharti Airtel and Reliance Jio.
Reported ARPU
Vi’s reported ARPU for the September quarter was Rs 167, below Jio’s Rs 211.4 and Airtel’s Rs 256. Airtel’s short-term goal is to reach an ARPU of Rs 300. However, IIFL Capital presented an interesting calculation: when ARPU is recalculated using only active users and excluding machine-to-machine (M2M) SIMs—which generate almost no revenue—Vi’s ARPU rises to Rs 209, comparable to Jio’s ARPU of Rs 220.
“After adjusting for M2M subs and removing inactive subs (based on active subs reported to TRAI), we derive that Vi’s ARPU is only around 5 percent lower than Jio’s, while its per-capita data usage is similar to peers,” the report said.
Reporting Practices Differ Across Telcos
According to the report, this implies that Vi’s actual paying user base is much smaller than its reported base. “Reported mobile sub data is not comparable across telcos as different telcos treat M2M subs differently,” it added.
A Vi spokesperson said the company reports its numbers in compliance with sector regulator TRAI’s guidelines. “We also regularly report our subscriber base in our results,” the person told The Economic Times in response to queries.
Voice Usage Remains Weak for Vi
“Vi’s Rs 167 reported ARPU and reported monthly per-capita usage stats of 585 minutes for voice and 19GB for data in 2QFY26 are significantly lower than peers. Vi has recently started reporting ARPU (ex M2M), which stood at Rs 180. If we consider only active subscribers excluding M2M, we calculate Vi’s ARPU at Rs 209, just 5 percent lower than Jio. Per-capita monthly data usage at 24GB is also similar to peers,” the report said, adding that per-capita voice usage remains 30%+ lower than peers, probably due to a higher proportion of customers receiving just incoming calls (on secondary SIM and/or during grace period between top-ups).
You can check Airtel’s and Jio’s past usage metrics in the story linked below. TelecomTalk has documented key metrics of Indian private telcos from time to time.
The report explained that Vi’s ARPU based on VLR subscribers excluding M2M is Rs 209. Its calculations suggest that the corresponding number for Jio is Rs 220. The key assumptions IIFL Capital says it made for Jio include: “Its fixed broadband ARPU is Rs 275, as Jio offers generous free trial offers from time to time. Content revenue in bundled plans is not part of Jio, only connectivity is. Rs 2 billion quarterly revenue is from its enterprise business.”
“Based on the subscriber mix derived above, we calculate the monthly per capita voice and data usage for Vi. We compare these with the relevant metrics of Jio and Bharti. We note that Bharti’s reported subscriber base already excludes M2M. It also includes only subscribers who have contributed to revenue in the past 30 days. For comparison purposes, we use VLR subs for all three telcos. Bharti’s VLR subs are higher than paying subs. This is because VLR subs are those who latch on to the network, including those who may not have topped up (or contributed to revenue) in the past 30 days,” the report explains.
IIFL Capital reportedly suggested two broad explanations for the anomalies: a large number of inactive SIMs and a high M2M base, both of which contribute tiny ARPUs (around Rs 33/month) and distort averages.
FWA Market: Jio Maintains Momentum
In the FWA segment, the report said, “Jio’s FTTH + FWA sub adds have been steady since July. June was impacted post decline in promotional activity after the IPL season. Bharti’s adds have been steady (at-one third of Jio) but saw a decline in October due to decline in wireline sub adds; Jio has maintained its recent run-rate, thanks to its calibrated approach, especially in UBR.”
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