Vodafone Idea continues to grapple with a decline in its wireless subscriber base, marking the 24th consecutive month of losing numbers. According to the latest report released by the Telecom Regulatory Authority of India (TRAI), Vodafone Idea lost around 1.2 million subscribers in March 2023, further exacerbating the company's ongoing struggles. This decline brings the total number of wireless subscribers for Vodafone Idea to approximately 237 million.
Also Read: Vodafone Idea Loses Over 2 Million Wireless Subscribers, Continuing a 23-Month Streak: TRAI
Over All Wireless Subscriber Base
The telecom industry in India witnessed a marginal increase in total wireless subscribers, with numbers rising from 1,141.96 million in February 2023 to 1,143.93 million by the end of March 2023. However, Vodafone Idea's persisting decline underscores the challenges the company faces in retaining and attracting customers.
Declining Subscriber Base
Notably, Vodafone Idea's active subscriber base also experienced a decline, falling from 226 million in March 2022 to 208 million in March 2023. This two-year decline highlights the difficulties faced by the company in maintaining its customer base and market share. Currently, Vodafone Idea holds a 20.7 percent market share in terms of wireless subscribers, representing a significant decrease from the previous year.
Also Read: Vodafone Idea 5G Expected to Be Launched in June: Report
Vodafone Idea VLR Percentage
In March 2023, Vodafone Idea experienced a decline in wireless subscribers across all circles except Mumbai, including their so-called priority circles. Surprisingly, even in Mumbai, the VLR percentage, which represents active subscribers, was only 70.46 percent. However, overall Vodafone Idea's proportion of active wireless subscribers (VLR) percentage is 87.81, and the industry's highest recorded figure is 99.63 percent.
Vodafone UK Group's Stance
The company's struggles extend beyond subscriber numbers, as Vodafone Idea faces funding challenges that threaten its survival. In its fiscal year 2023 results, Vodafone Group, the UK-based parent company, expressed concerns over Vodafone Idea.
In its statement, Vodafone Group said, "VIL remains in need of additional liquidity support from its lenders and intends to raise additional funding. There are significant uncertainties in relation to VIL's ability to make payments in relation to any remaining liabilities covered by the mechanism, and no further cash payments are considered probable from the Group as at March 31, 2023."
Also Read: DoT Disappointed With Vodafone Idea’s Promoters Over Funding Delay: Report
DoT Worried About Vi's inability to Infuse Funds
According to a recent report, the failure of Vodafone Idea's promoters to inject the minimum required funds has raised concerns among top officials in the telecom department. The lack of timely capital infusion has not only disappointed officials but also raised questions about the company's ability to secure external funding. This setback has had a direct impact on Vodafone Idea's operations, hindering its ability to launch 5G services and further enhance Network operations.
As Vodafone Idea faces declining subscriber numbers, funding challenges, and uncertainty surrounding its future, the company finds itself at a critical juncture.
