IndiaCatalog.com
India News
Search Web Directory
News Home
Vodafone Idea to do away with all low Arpu subscribers by May end
Posted on 15th May 2019
Vodafone Idea will complete the elimination of low Arpu (average realisation per user) subscribers who are paying below Rs 35 recharge plan by May end.

According to the company’s management, the telco rolled out the minimum recharge plan for most of the country in December, however, certain set of customers in some markets may not have come into the new tariff fold because of various regulatory requirements.

The management told analysts in a conference call on Tuesday that some part of the subscriber base in some segments are just beginning to be put on minimum recharge regime and all of them should end by May end.

Both Vodafone Idea and Bharti Airtel in October 2018 decided to discontinue with the recharge plans lower than `35 — a move that has improved the key operational metric of Arpu.

Post the introduction of the scheme, Vodafone Idea over the last two quarters has seen a loss of around 88 million low-paying, mostly incoming users, who recharged for less than `35 a month. Bharti Airtel has not disclosed its subscriber numbers this quarter due to the ongoing rights issue process of the company, but in Q3, it lost 48 million users.

With the substantial improvement of 16.3% in Arpu to `104 from `89 in Q3FY19 along with synergy benefits kicking in, Vodafone Idea has managed to improve its Ebitda by 57% quarter-on-quarter to `1,785 crore. However, operationally, the company continues to be on a weak footing.

Analysts observed that 4G net subscriber additions slowed down to 5.4 million in January-March 2019 versus 9.5 million in Q3FY19 and 8.4 million in Q2FY19. “This was despite an increase in 4G pop coverage to 65% from 64% in Q3FY19,” analysts at UBS noted.

Senior company officials told analysts that the whole potential of the merger is still being unleashed. Balesh Sharma, CEO, Vodafone Idea, said the company is increasing coverage, creating capacity and customer experience, especially from certain geographies where it lacks coverage. “Integration takes time, though it is moving at a good speed. We are aware that in terms of competitiveness we are not fully there. So, while you still have, for example, 65% coverage in 4G, there are certain geographies where our 4G coverage is not there and therefore, the customers when they decide to move on to 4G, we are not in consideration,” he said.

Meanwhile, on network integration, Vodafone Idea removed additional equipment on 24,000 sites out of a total of 67,000 sites for which it had converted tenancy into loading and it also exited 9,900 low utilisation sites. “Network integration resulted in a 10% q-o-q decrease in network opex. The company reported the realisation of annualised opex synergies of 60% of `8,400 crore annual opex synergies target from the merger,” analysts said.

Sharma said the company plans to complete most of its network integration by March 2020 and all of it by June 2020 and is confident of it given the progress of the first seven months.

Overall, while Vodafone Idea continues to cut costs and realise benefits from opex synergies, it also continues to lose revenue market share versus Bharti as well as Jio, analysts at Credit Suisse observed.

However, the management said the cellular revenues versus its two peers remain weak primarily because of being behind in the 4G coverage and capacity build up, and also as it has been busy completing the integration not just of the network but also the entire distribution network across the country.

The management also clarified that it is yet to take a call on the continuation of the `299 post-paid plan, which according to reports have been discontinued by the rival Bharti Airtel. Sharma said while it continues to offer `299 post-paid plan, looking at the market opportunity, it may decide to move away from it in some markets followed by the others in India.

Vodafone Idea on Monday narrowed its consolidated net loss during the January-March quarter at `4,882 crore on the back of lower operating costs due to realisation of merger synergies. Revenues during the quarter at `11,775 crore remained flat sequentially, after suffering a decline of 2.2% in the previous quarter and a 7.1% fall in the September quarter.

Related Companies: IDEA Cellular Limited   

Other Latest News
Gold prices slump to Rs 48,900 per 10 gm, Silver rallying at Rs 51,950 a kg
Posted on 11th July 2020
Gold prices on Saturday fell to Rs 48,900 from Rs 49,100 per 10 gram, while silver climbed to Rs 51,950 from Rs 51,900 per kilogram, according to Good Returns website.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

Facebook plans to ban political ads before US Presidential election: Report
Posted on 11th July 2020
Facing intense criticism from all quarters, Facebook is planning to ban political ads on its platform like Twitter does as the US inches closer towards the presidential election in November, the media reported on Saturday.

According to a report in CNN Business citing sources, the potential ban on political ads to reduce the spread of disinformation has been under consideration since last fall.

RIL closes four Jio stake sale deals, receives Rs 30,062 cr from investors
Posted on 11th July 2020
After Facebook Inc, Reliance Industries has closed deals to sell a minority stake in its digital arm to four other investors, receiving a total of over Rs 30,062 crore.

In a regulatory filing, Reliance said it has closed the sale of 6.13 per cent stake in Jio Platforms with L Catterton, The Public Investment Fund, Silver Lake and General Atlantic.

Kolkata: Eden Gardens to be used as COVID-19 quarantine facility for police personnel
Posted on 11th July 2020
Kolkata Police can now use the galleries of Eden Gardens stadium as a makeshift quarantine facility, the Cricket Association of Bengal (CAB) on Friday said.

A meeting at Kolkata Police Headquarter, Lal Bazaar, took place at the Chamber of Special Commissioner Jawed Shamim. It was attended by CAB president Avishek Dalmiya.

India sees 27,114 new coronavirus cases, tally crosses 8 lakh-mark
Posted on 11th July 2020
In another highest single-day spike of coronavirus cases, India on Saturday reported 27,114 new cases in the last 24 hours. As many as 519 deaths were reported during this period.

With this, the country's total count has crossed the eight lakh-mark.

The total number of positive cases in the country stands at 8,20,916, including 2,83,407 active cases, 5,15,386 cured/discharged/migrated and 22,123 deaths, according to the Ministry of Health and Family Welfare.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Vodafone Idea to do away with all low Arpu subscribers by May end
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Vodafone Idea to do away with all low Arpu subscribers by May end

Most Read News

China has caused great damage to the US, rest of the world: Trump

COVID-19 Outbreak: India crosses Russia, takes third spot in list of worst-hit nations

US airlines reach deal on govt loans as Covid-19 threatens demand, jobs

Gold price slides Rs 188 to Rs 48,444 per 10 gm, silver is 48,870 per kg

Apollo Tyres decides to reduce capex by Rs 400 crore over coronavirus

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2020 IndiaCatalog.com
    All Rights Reserved
Privacy Statement