Vodafone Idea (VIL) CEO Akshaya Moondra discussed the impact of recent tariff increases on subscriber numbers, specifically noting the influence of state-run BSNL in attracting customers. Despite an initial dip in users, Moondra highlighted a stabilization in the trend, with gradual improvements in subscriber figures.
During VIL’s Q2 earnings call for the quarter ending September 30, 2024, Moondra acknowledged a temporary loss of subscribers following the tariff hike in July. Many migrated to BSNL, which mainly offers 3G services and limited 4G in select regions, owing to its affordability.
However, the situation appears to be improving. We experienced an impact from BSNL earlier in the quarter, but we’ve seen a noticeable turnaround from August through November,” Moondra stated. He expressed optimism that Vodafone Idea is nearing its pre-tariff-hike subscriber levels, although a full recovery may take longer.
Moondra attributed the turnaround to the superior network experience offered by Vodafone Idea, particularly for data-intensive and high-usage customers. “There is a noticeable difference in quality for high-usage customers,” he noted, expressing confidence that their offerings would continue to draw users back.
Despite these positive signs, the company’s total subscriber base fell from 21 crore to 20.5 crore during the quarter, with the 4G user count slightly dropping to 12.59 crore. Moondra noted that subscriber growth typically slows during the September quarter, which contributed to the decline.
Looking forward, BSNL’s plans to launch nationwide 4G services by mid-2025 present a potential challenge. Nevertheless, Vodafone Idea is forging ahead with significant investments, having secured a $3.6 billion (approximately ₹30,000 crore) deal to enhance its 4G network and introduce 5G in select regions.
Moondra remains confident about sustaining and expanding the subscriber base, emphasizing the role of improved user experiences and ongoing network investments.
