Subscriber loss to BSNL after tariff hike is reversing: Vodafone Idea CEO Akshaya Moondra

Subscriber loss to BSNL after tariff hike is reversing: Vodafone Idea CEO Akshaya Moondra

Vodafone Idea's CEO Akshaya Moondra reports that the subscriber loss to BSNL following recent tariff hikes is reversing. Despite initial setbacks, the company sees a gradual improvement in subscriber numbers.

Business Today Desk
Business Today Desk
  • New Delhi,
  • Updated Nov 15, 2024 12:48 PM IST
Subscriber loss to BSNL after tariff hike is reversing: Vodafone Idea CEO Akshaya MoondraVIL has primarily lost its subscribers to BSNL due to tariff hikes announced in July 2024. The management indicated that the trend has started reversing from August onwards.

Vodafone Idea (VIL) CEO Akshaya Moondra has addressed the impact of recent tariff hikes on subscriber numbers, particularly highlighting the role of state-run BSNL in attracting users. Despite a temporary loss of customers, Moondra said the situation is stabilising, with subscriber numbers gradually improving.

Speaking during VIL’s Q2 earnings call for the quarter ending September 30, 2024, Moondra acknowledged that the company initially lost subscribers after raising tariffs in July. Many of these users switched to BSNL, which primarily offers 3G services and limited 4G in select circles, due to its affordability.

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However, Moondra stated that this trend is reversing. “The impact of BSNL has been there this quarter, but we have seen that impact reversing quite quickly, from August to September to October, and October to November,” he said. He added that Vodafone Idea is inching closer to its pre-tariff-hike position, though some losses may take more time to recover.

Moondra attributed the shift back to Vodafone Idea’s superior network quality, particularly for customers who are heavy users of data or voice services. “There is definitely a differential in experience for a customer who is a high user,” he said, expressing confidence that the company’s offerings will continue to attract subscribers.

Despite the partial recovery, Vodafone Idea’s overall subscriber base dropped from 21 crore to 20.5 crore during the quarter, with its 4G user base declining slightly to 12.59 crore. Moondra noted that the September quarter is typically weak for subscriber growth, further contributing to the decline.

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Looking ahead, BSNL’s plans to roll out nationwide 4G services by mid-2025 could pose a renewed challenge. However, Vodafone Idea is pushing ahead with significant network investments, having finalised a $3.6 billion deal (approximately ₹30,000 crore) to upgrade its 4G infrastructure and roll out 5G in select areas.

Moondra remains optimistic about retaining and growing the company’s subscriber base, citing improved customer experience and continued investments as key factors.

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Published on: Nov 15, 2024 12:46 PM IST
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