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The impact of mobile phone service tariff hike was evident in July with <keyword id="19896911" type="General" weightage="20" keywordseo="Reliance-Jio" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Jio" meta.hostid="261" meta.entityid="Reliance Jio">Reliance Jio</keyword>, Bharti <keyword id="19896909" type="General" weightage="20" keywordseo="Airtel" source="keywords">Airtel</keyword>, <keyword id="19899016" type="General" weightage="20" keywordseo="Vodafone-Idea" source="keywords" meta.keywordsubtype="org" meta.entityname="Vodafone Idea" meta.hostid="261" meta.entityid="Vodafone Idea">Vodafone Idea</keyword> reporting loss of customer base, which resulted in an overall decline in <keyword id="20781077" type="General" weightage="20" keywordseo="telecom-subscribers" source="keywords">telecom subscribers</keyword> in the country. Reliance <keyword id="19906886" type="General" weightage="100" keywordseo="Jio" source="keywords">Jio</keyword>, Bharti Airtel and Vodafone Idea increased their mobile service plan rates in the range of 10-27 % in the first week of July. Airtel and Vodafone Idea have more than doubled their entry-level mobile rates in the last 2-3 years to Rs 199 that comes with 28 days validity. State-run <keyword id="19970536" type="General" weightage="20" keywordseo="BSNL" source="keywords" meta.keywordsubtype="org" meta.entityname="BSNL" meta.hostid="261" meta.entityid="BSNL">BSNL</keyword> was the only player that added new subscribers and led the market in terms of new net customer addition, according to a monthly subscribers report released by the Telecom Regulatory Authority of India on Friday. According to the report, BSNL added over 2.94 million mobile subscribers in July. Bharti Airtel lost 1.69 million mobile subscribers which was highest among its peers. Vodafone Idea and Reliance Jio lost 1.41 million and 758,000 mobile subscribers, respectively. Overall, the telecom subscriber base in the country declined marginally to 1,205.17 million in July from 1,205.64 million in June. North East, Maharashtra, Rajasthan, Mumbai, Kolkata, Tamil Nadu, Punjab, Bihar, West Bengal, UP East, Haryana, Andhra Pradesh telecom circles recorded decline in mobile customer base post the hike in mobile services rates. The wireline or the fixed line connections segment increased by about 1% to 35.56 million in July from 35.11 million in June. Reliance Jio led the fixed-line segment with addition of over 480,000 new subscribers. It was followed by Bharti Airtel which added over 136,000 new subscribers, VMIPL 12,413, Vi 11,375, Tata Teleservices 3,971 and Quadrant added 12 new fixed line customers. BSNL was the biggest loser in the segment. The state-run firm lost 134,000 fixed line customers and its sister concern lost 56,454 customers. The broadband customer base in the country increased to 946.19 million at the end of July from 940.75 million in June. Top five players accounted for 98.42% of total broadband connection in the country. Reliance Jio led the chart with 488.63 million <keyword id="23252277" type="General" weightage="20" keywordseo="broadband-customers" source="keywords">broadband customers</keyword>, Airtel with 284.03 million, Vodafone Idea with 126.72 million, BSNL with 29.61 million and Atria Convergence with 2.26 million. Bharti Airtel led the machine-to-machine cellular mobile connections with 28.46 million subscribers accounting for 53.02 % market share.It was followed by <keyword id="21892784" type="General" weightage="20" keywordseo="vodafone-idea-limited" source="keywords">Vodafone Idea Limited</keyword>, Reliance Jio Infocomm Limited and BSNL with market share of 27.71 %, 13.68 % and 5.58 % share respectively.

Jio, Airtel, Vi record customer loss post tariff hike, BSNL becomes only gainer in July

New Delhi [India], July 19 (ANI): <keyword id="19899016" type="General" weightage="100" keywordseo="Vodafone-Idea" source="keywords" meta.keywordsubtype="org" meta.entityname="Vodafone Idea" meta.hostid="261" meta.entityid="Vodafone Idea">Vodafone Idea</keyword> approved the allotment of more than <keyword id="22467816" type="General" weightage="20" keywordseo="40-crore-shares" source="Orion">40 crore shares</keyword> on a preferential basis to <keyword id="6354716" type="General" weightage="20" keywordseo="Nokia" source="Orion">Nokia</keyword> Solutions and Networks India and to <keyword id="330957" type="General" weightage="20" keywordseo="Ericsson-India" source="Orion">Ericsson India</keyword>, the company informed the exchange in a filing. The company stated that this preferential allotment is in accordance with SEBI's regulations which totals around <keyword id="22467815" type="General" weightage="20" keywordseo="Rs-615-crore" source="keywords">Rs 615 crore</keyword> and represents a strategic move to enhance the company's capital base. According to the statement by the company, the breakdown includes around 25 crore <keyword id="20035340" type="General" weightage="20" keywordseo="equity-shares" source="keywords">equity shares</keyword> to Nokia Solutions and Networks India Pvt. and over 15 crore equity shares to Ericsson India Pvt. The issue price per equity share was set at Rs. 14.80, including a premium of Rs. 4.80 per share at a face value of Rs 10 per share. "The Capital Raising Committee of the Board ("Capital Raising Committee") has, at its meeting, approved the second tranche of allotment of 41,52,02,701 Equity Shares of face value of Rs. 10/- each at an issue price of Rs. 14.80 per equity share (including a premium of Rs. 4.80 per equity share), to Nokia Solutions and Networks India Private Limited (25,67,56,756 Equity Shares) and Ericsson India Private Limited (15,84,45,945 Equity Shares), aggregating to Rs. 614.5 crores, on a preferential basis" said the company. Recently, Vodafone Idea (<keyword id="634808" type="General" weightage="20" keywordseo="VIL" source="Orion">VIL</keyword>) added 0.8 million mobile broadband (MBB) subscribers in May, but the company continued to see declines in both overall and active subscriber bases, losing 0.9 million and 1.7 million subscribers, respectively. The shares of Vodafone Idea closed at Rs 16.32 after a decline of more than 2 per cent on Thursday.

Vodafone Idea to raise Rs 615 crore through preferential shares allotment to Nokia and Ericsson India

In 2024, majority of internet users are subscribing to <keyword id="19936815" type="General" weightage="20" keywordseo="OTT-platforms" source="keywords">OTT platforms</keyword>. After all, who doesn’t like watching their favourite content at whatever time they want? The days when we had to wait for a particular TV show are almost over. As more and more people shift towards consuming OTT content, telecom brands are taking notice of this and are offering various subscriptions bundled with their plans. The three major telecom providers in India – <keyword id="19896911" type="General" weightage="100" keywordseo="Reliance-Jio" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Jio" meta.hostid="261" meta.entityid="Reliance Jio">Reliance Jio</keyword>, Vodafone and <keyword id="19896909" type="General" weightage="20" keywordseo="Airtel" source="keywords" meta.keywordsubtype="org" meta.entityname="Airtel" meta.hostid="261" meta.entityid="Airtel">Airtel</keyword> have many options to choose from when it comes to going for a plan that comes with an OTT subscription. Let us take a detailed look at at some of the best postpaid and prepaid plans from <keyword id="19906886" type="General" weightage="20" keywordseo="Jio" source="keywords">Jio</keyword>, Airtel, and <keyword id="19899016" type="General" weightage="20" keywordseo="Vodafone-Idea" source="keywords">Vodafone Idea</keyword> that include OTT subscriptions. <h2>Jio postpaid and prepaid plans with OTT benefits</h2> <h2><keyword id="20318741" type="General" weightage="20" keywordseo="postpaid-plans" source="keywords">Postpaid Plans</keyword></h2> <a href="https://www.businessinsider.in/business/news/reliance-jio-launches-new-plan-under-rs-200-get-2gb-daily-data-and-more/articleshow/112653218.cms" data-type="tilCustomLink" target="_blank">Reliance Jio </a>offers a variety of postpaid plans that come with OTT subscriptions, providing value beyond just calls and data. Rs 399 Plan: Includes 75GB data with rollover up to 200GB, unlimited calling, 100 SMS/day, and access to <keyword id="19897536" type="General" weightage="20" keywordseo="Netflix" source="keywords" meta.keywordsubtype="org" meta.entityname="Netflix" meta.hostid="261" meta.entityid="Netflix">Netflix</keyword> Mobile and <keyword id="20197203" type="General" weightage="20" keywordseo="Amazon-Prime" source="keywords" meta.keywordsubtype="org" meta.entityname="Amazon Prime" meta.hostid="261" meta.entityid="Amazon Prime">Amazon Prime</keyword> for one year. Rs 599 Plan: Offers 100GB data with 200GB rollover, unlimited calls, 100 SMS/day, and Netflix Mobile and Amazon Prime subscriptions. Rs 799 Plan: Provides 150GB data, 200GB rollover, unlimited calls, 100 SMS/day, and includes Netflix Mobile, Amazon Prime, and two additional SIMs for family sharing. Rs 999 Plan: Comes with 200GB data, 500GB rollover, unlimited calls, 100 SMS/day, Netflix Mobile, Amazon Prime, and three additional SIMs. Rs 1,499 Plan: Offers 300GB data, 500GB rollover, unlimited calls, 100 SMS/day, and international benefits including 5GB data and 500 minutes of international calling. Also includes Netflix Mobile and Amazon Prime. <h2>Prepaid Plans</h2> For those who prefer prepaid, Jio also offers plans with extensive OTT benefits. Rs 448 Plan: This is the latest plan from Jio offering many benefits. The plan is valid for 28 days. It offers 2GB/day data, unlimited calls, 100 SMS/day, and subscriptions to 13 OTT platforms, including SonyLIV, ZEE5, and JioCinema. Rs 398 Plan: Comes with 2GB/day data, unlimited calls, and access to multiple OTT apps like Sony LIV, ZEE5, and Lionsgate Play, valid for 28 days. Rs 857 Plan: Offers 2GB/day data for 84 days, unlimited calls, and access to Amazon Prime Video Mobile Edition, Disney+ Hotstar Mobile, and other OTT platforms. Rs 1,099 Plan: Includes 2GB/day data, unlimited calls, and free Netflix Mobile subscription for 84 days, along with JioTV and JioCinema. Rs 3,227 Annual Plan: Provides 2GB/day data for 365 days, unlimited calls, and a one-year subscription to Amazon Prime Video Mobile Edition along with other OTT benefits. <h2>Airtel postpaid and prepaid plans with OTT benefits</h2> <h2>Postpaid plans</h2> Airtel’s postpaid plans are packed with OTT subscriptions and additional benefits. Rs 499 Plan: Offers 75GB data with 200GB rollover, unlimited calls, 100 SMS/day, and subscriptions to Amazon Prime for six months and Disney+ Hotstar Mobile for one year. Rs 999 Plan: Includes 150GB data with 200GB rollover, unlimited calls, 100 SMS/day, and access to Disney+ Hotstar Mobile, Netflix Basic, and Amazon Prime. Rs 1,499 Plan: Provides 200GB data, 200GB rollover, unlimited calls, 100 SMS/day, and subscriptions to Netflix Standard, Disney+ Hotstar Mobile, and Amazon Prime. <h2>Prepaid Plans</h2> Airtel’s prepaid plans also come with rich OTT offerings. Rs 359 Plan: Valid for 30 days, includes 2GB/day data, unlimited calls, 100 SMS/day, and access to Airtel Xstream Play with 20+ OTT platforms. Rs 399 Plan: Offers 3GB/day data for 28 days, unlimited calls, 100 SMS/day, and access to Airtel Xstream Play. Rs 699 Plan: Provides 3GB/day data for 56 days, unlimited calls, 100 SMS/day, and Amazon Prime Membership for 56 days. Rs 1,499 Plan: Valid for 84 days, comes with 3GB/day data, unlimited calls, 100 SMS/day, and a Netflix Basic membership. <h2>Vodafone Idea postpaid and prepaid plans with OTT benefits</h2> <h2>Postpaid plans</h2> Vodafone Idea's postpaid plans offer various OTT subscriptions along with additional perks. Rs 401 Plan: Includes 50GB data, unlimited calls, and access to SonyLiv Mobile, Zee5, and Hungama Music. Rs 501 Plan: Offers 90GB data, unlimited calls, and subscriptions to Amazon Prime, Disney+ Hotstar Mobile, and Zee5. Rs 701 Plan: Provides unlimited data, unlimited calls, and access to Disney+ Hotstar Super, Amazon Prime, and Zee5. Rs 1,101 REDX Plan: Comes with unlimited data, unlimited calls, 3,000 SMS/month, and premium OTT benefits including SonyLiv, Zee5, and Disney+ Hotstar. The plan also includes international roaming benefits and airport lounge access. <h2>Prepaid Plans</h2> Vi’s prepaid plans are designed to offer maximum entertainment along with data benefits. Vi Movies &amp; TV Plus Plan: Priced at Rs 248, it includes access to 17 OTT apps, 350 live TV channels, and 6GB of additional data. Vi Movies &amp; TV Lite Plan: Costs Rs 154 and offers access to 16 OTT apps and 2GB of additional data. Vi Movies &amp; TV Pro Plan: Priced at Rs 202, it offers access to over 13 OTT apps and 5GB of additional data. Whether you’re a postpaid or prepaid user, Jio, Airtel, and Vodafone Idea have tailored plans that offer not just connectivity but a wealth of entertainment through OTT subscriptions. From Netflix and Amazon Prime to Disney+ Hotstar and SonyLiv, these plans ensure you stay connected and entertained at competitive prices. Choose the plan that best suits your data needs and OTT preferences, and enjoy seamless connectivity along with premium content.

Jio, Airtel, or Vodafone? Best postpaid and prepaid plans with OTT subscription

Mobile phone users might have to spend notably more for their recharge packs after the general election, as reports indicate that telecom firms are gearing up for a fourth round of <keyword id="891186" type="General" weightage="20" keywordseo="tariff-hikes" source="Orion">tariff hikes</keyword> in recent times. According to a report by brokerage Axis Capital, a meaningful hike of approximately 25% by operators is anticipated soon. This surge is attributed to a stable competitive environment, the necessity to bolster profitability post heavy <keyword id="21245910" type="General" weightage="20" keywordseo="5G-investments" source="keywords">5G investments</keyword>, and ongoing government support. Despite the apparent magnitude of the increase, the report suggests it should be manageable for both urban and rural users. Urban households may witness a rise in telecom expenditure from 3.2% to 3.6% of total expenditure, while for rural subscribers, spending could escalate from 5.2% to 5.9%. Analysts predict that the consumers are likely to remain loyal and pay up, especially if they continue to enjoy high-speed connectivity — a vital need of these modern times. For <keyword id="20055601" type="General" weightage="20" keywordseo="telecom-operators" source="keywords">telecom operators</keyword>, the projected roughly 25% hike in headline rates is expected to correspond to a 16% growth in the average revenue per user (ARPU), as estimated by Axis Capital. While <keyword id="2003276" type="General" weightage="20" keywordseo="jio" source="Orion">Jio</keyword> reported an ARPU of Rs 181.7 for the quarter ending March, Bharti Airtel and <keyword id="19899016" type="General" weightage="20" keywordseo="vodafone-idea" source="keywords">Vodafone Idea</keyword> (Vi) are yet to disclose their March quarter numbers. However, their figures stood at Rs 208 and Rs 145 respectively for the October-December 2023 period. Peeyush Vaish, TMT industry leader at Deloitte, South Asia, anticipates a 10-15% increase in ARPUs, adding approximately Rs 100 per subscriber by the end of this calendar year. This hike is expected to be driven by price increases for 4G/5G bundled packs and the phasing out of low-value packs. Analysts foresee Bharti Airtel and Jio emerging as the primary beneficiaries of the <keyword id="21656632" type="General" weightage="20" keywordseo="wireless-pack-price-hike" source="keywords">wireless pack price hike</keyword>. While Vi is also expected to boost its ARPU by fortifying its network and minimising subscriber churn, the overall revenue impact may still be limited compared to its competitors. At the end of Q4 FY24, Jio’s total assets stood at Rs 4,87,405 crore, while its net profit from January to March climbed to Rs 5,337 crore from Rs 4,716 crore a year ago. On the other hand, Bharti Airtel’s consolidated Q4 revenue came in at Rs 37,599 crore, with its net profit of Rs 2,072 crore dropping 31.1% compared to a year ago. (With inputs from The Economic Times)

Mobile recharge packs to get more expensive as telcos gear up for another round of tariff hikes: Report

<keyword id="19899016" type="General" weightage="100" keywordseo="Vodafone-Idea" source="keywords" meta.keywordsubtype="org" meta.entityname="Vodafone Idea" meta.hostid="261" meta.entityid="Vodafone Idea">Vodafone Idea</keyword> has secured contracts worth Rs 30,000 crore with <keyword id="19941076" type="General" weightage="20" keywordseo="Nokia" source="keywords" meta.keywordsubtype="org" meta.entityname="Nokia" meta.hostid="261" meta.entityid="Nokia">Nokia</keyword>, <keyword id="19962937" type="General" weightage="20" keywordseo="Ericsson" source="keywords" meta.keywordsubtype="org" meta.entityname="Ericsson" meta.hostid="261" meta.entityid="Ericsson">Ericsson</keyword>, and <keyword id="19897758" type="General" weightage="20" keywordseo="Samsung" source="keywords" meta.keywordsubtype="org" meta.entityname="Samsung" meta.hostid="261" meta.entityid="Samsung">Samsung</keyword>, a PTI report revealed. These contracts, which span a period of three years, are a crucial part of the company's Rs 55,000 crore capital expenditure (capex) plan. The investment will focus on expanding 4G coverage, launching 5G services, and meeting the growing demand for data in India. The debt-laden telecom operator announced the deal as it strives to regain market share in an increasingly competitive industry. Vodafone Idea has faced financial difficulties since its merger in 2018 between Vodafone Group's Indian arm and Aditya Birla Group's Idea Cellular. Since then, the company has struggled to compete with larger rivals such as <keyword id="19951944" type="General" weightage="20" keywordseo="Bharti-Airtel" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharti Airtel" meta.hostid="261" meta.entityid="Bharti Airtel">Bharti Airtel</keyword> and Reliance Jio, both of which have made significant inroads into India’s telecom market. The Rs 30,000 crore deal with Nokia, Ericsson, and Samsung is expected to provide Vodafone Idea with the necessary equipment to expand its 4G coverage from 1.03 billion to 1.2 billion people, as well as initiate the rollout of 5G services in key markets. The company confirmed that supplies under the new contract would begin arriving in the next quarter. In a statement, Vodafone Idea said that its primary goal is to enhance 4G connectivity across India while simultaneously preparing to introduce 5G technology. ""Vodafone Idea has concluded a mega, about USD 3.6 billion (around Rs 300 billion), deal with Nokia, Ericsson and Samsung for supply of network equipment over a period of three years. The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth," the company said in a statement. Akshaya Moondra, CEO of Vodafone Idea, said as per a Livemint report, “"We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era." (With Reuters and PTI inputs)

Vodafone Idea seals Rs 30,000 crore deal with Nokia, Ericsson, and Samsung for 4G and 5G expansion

<ul><li>India’s second largest telecom company Bharti <keyword id="15491" type="General" weightage="20" keywordseo="Airtel" source="Orion">Airtel</keyword> is likely to be the biggest beneficiary of <keyword id="1553175" type="General" weightage="20" keywordseo="Vodafone-Idea" source="Orion">Vodafone Idea</keyword>’s troubles. </li><li>While Airtel already boasts of the industry-best average revenue per user (ARPU), thanks to higher quality subscribers, lower churn and higher consumption are now aiding the company’s bottom line. </li><li>Going forward, analysts have underlined why Airtel and not market leader Reliance Jio is expected to make the most out of Vodafone Idea’s troubles. </li></ul>India’s second largest telecom company Bharti Airtel is likely to be the biggest beneficiary of Vi’s troubles, regardless of whether the Indian telecom market continues to operate as it is today with three players or becomes a duopoly. Since Reliance Jio’s debut in 2016, the Indian telecom sector has seen a massive upheaval and consolidation. From nearly 9 active telecom companies in the private sector, only Jio, Airtel and Vodafone-Idea have active operations, and they account for 91% of India’s total subscriber base. While Vodafone Idea is struggling to retain its subscribers and cut down on losses, Jio and Airtel have consolidated their leads and expanded their market share over the past two years. Vodafone Idea’s market share has fallen from 24% at the end of March 2021 to just 20.7% two years later. Airtel<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q4-net-profit-jumps-50-yoy-to-3006-crore-beats-estimates/articleshow/100280246.cms"> reported</a> a 50% YoY jump in its Q4 net profit to ₹3,006 crore. Better quality subscribers, increasing consumption and lower churn helped the company shore up its bottom line during the quarter. “We are seeing lower churn and we are also seeing a growth in consumption,” said Gopal Vittal, chief executive officer and managing director, Bharti Airtel in a post-earnings call with analysts. For context, while Vodafone Idea lost nearly 1.96 million subscribers per month in FY22 and FY23, Airtel added an average of 0.8 million subscribers per month while Jio added 0.3 million subscribers per month. Net subscriber additions in FY22 and FY23 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Jio </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-18.8 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.1 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.3 million </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bharti Airtel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.9 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.5 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.4 million </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vodafone Idea </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-22.9 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-24.0 million </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-46.9 million </td></tr></tbody></table> Source: <keyword id="6356988" type="General" weightage="20" keywordseo="TRAI" source="Orion">TRAI</keyword> Underlining Vodafone Idea’s steep fall is the fact that post the merger of Vodafone India and Idea Cellular in August 2018, the merged entity had 440 million subscribers. Fast forward to March 2023, its subscriber base has declined to 237 million, which is a decline of 203 million. The analysts at Macquarie Research say that regardless of what happens to Vodafone Idea, the outlook looks bright for Airtel, ahead of market leader Reliance Jio. <cmsannotation type="cmsannotation" annotationid="Airtel the biggest winner regardless of Vodafone Idea’s survival" comment="subhead" text="Airtel the biggest winner regardless of Vodafone Idea’s survival">Airtel the biggest winner regardless of Vodafone Idea’s survival</cmsannotation> With Vodafone Idea’s troubles not showing any signs of receding anytime soon, analysts at Macquarie Research believe that Airtel could end up being the biggest winner instead of market leader Reliance Jio, estimating the telco’s subscriber base, average revenue per user (ARPU) and ROIC. Return on invested capital, or ROIC, is a financial metric that measures a company’s ability to efficiently allocate assets to profitable ventures. Higher the ROIC, the better it is. “The incremental operating leverage at Bharti Airtel is much higher than Jio due to an already optimized cost structure at Jio and with finance charges set to catch-up and sticky depreciation &amp; amortization charges,” says Macquarie in its report, explaining why it expects Airtel and not Jio is expected to be the biggest winner regardless of what happens to Vodafone Idea. <cmsannotation type="cmsannotation" annotationid="The white knight" comment="subhead" text="The white knight">The white knight</cmsannotation> The first scenario involves the telco being bailed out via capital infusion and a growth in its ARPU to cover its liabilities over the next 10-15 years. In this scenario, while Jio and Airtel are not expected to gain much in terms of subscribers, Airtel’s higher incremental operating leverage than Jio puts it in a better position. As a result, its ROIC is expected to rise from existing 6% to 10-14% by FY27, while Jio’s ROIC is expected to rise from 7% to 7-10% in the same period. <cmsannotation type="cmsannotation" annotationid="The slow grind" comment="subhead" text="The slow grind">The slow grind</cmsannotation> If things don’t change and Vi is unable to raise funds and invest in its network, analysts expect the telco to continue losing subscribers and its market share falling to just 15% by FY30. In this scenario, Reliance Jio could expand its subscriber base to 500 million, followed by Airtel at 365 million and Vodafone Idea at 200 million. Airtel is expected to take the lead in two other critical metrics – ARPU and ROIC. Its ARPU is expected to rise to ₹250 by FY27, while Jio is expected to remain in the second place at ₹235. Airtel’s ROIC is expected to rise to 10-13%, with Jio once again in the second place at 7-10%. <cmsannotation type="cmsannotation" annotationid="Duopoly" comment="subhead" text="Duopoly">Duopoly</cmsannotation> Duopoly is the worst-case scenario for Vodafone Idea. If the telco winds down its operations, Jio and Airtel could gain in terms of subscribers as well as ROIC. In this case, Jio’s subscriber base could rise up to 585 million by FY27, with Airtel coming in second place at 455 million. However, Vodafone Idea’s exit could lead to even better ROIC for both Airtel and Jio, with Macquarie pegging Airtel’s ROIC to be in the range of 10-16%, while Jio is expected to remain in the second place with a ROIC of 8-12%. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/lic-shares-surge-over-3-after-it-posts-a-five-fold-jump-in-q4-net-profit/articleshow/100495712.cms">LIC shares surge over 3% after it posts a five-fold jump in Q4 net profit</a> <a href="https://www.businessinsider.in/stock-market/news/adani-enterprises-titan-eicher-motors-tata-motors-reliance-and-other-big-companies-performance-in-nifty-50/articleshow/100474408.cms">Big boys drive Nifty50’s revenue and profit growth in FY23</a> <a href="https://www.businessinsider.in/business/corporates/news/gqg-partners-rajiv-jain-doubles-down-on-his-adani-bet/articleshow/100450041.cms">GQG Partners’ Rajiv Jain doubles down on his Adani bet</a>

Airtel, not Jio, to gain the most from Vodafone Idea's troubles

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s shares zoomed on Monday after the government agreed to convert interest dues worth ₹16,133 crore into equity.</li><li>The equity conversion will make the government the largest shareholder of Vodafone Idea, with a 33% stake.</li><li>The government will remain a passive investor, leaving the Aditya Birla Group and Vodafone Plc as the primary decision makers of the telco.</li></ul>Vodafone Idea’s shares zoomed by 25% on Monday hitting an upper circuit, after the government agreed to convert interest dues worth ₹16,133 crore into equity. The move breathed a fresh lease of life into the telco’s attempts to raise funds to make payments to vendors and sign contracts with telecom equipment makers and roll out its 5G network. The share price of the troubled telco is back to its December 2022 levels, erasing the losses it saw this year, so far. <div type="image" title="Vodafone Idea share price April 2022 to Feb 2023." msid="97642952" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price in FY23&amp;lt;/p&amp;gt;"></div> “The total amount to be converted into equity shares is ₹16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of ₹10 each at an issue price of ₹10 each,” Vodafone Idea said in an exchange filing on February 3. The equity conversion will pave the way for the government to become the largest shareholder of Vodafone Idea, long after the telecom reforms package was <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">announced in September 2021</a>. As a result of this, the Aditya Birla Group’s stake will stand at 31.8%, while Vodafone Plc’s stake will be at 18.3%. This is a reduction from the existing stake of 75% held by the two promoters. <div type="Article" hostid="261" msid="86221662" title="Government picking up a stake in Vodafone Idea ‘might be a remedy worse than the disease’, say experts" mstype="2" mssubtype="0"></div> However, Aditya Birla Group, and Vodafone Plc, will continue to drive the company. Vodafone Idea’s management has already underlined that the government will neither take a seat on the company’s board, nor will it take decisions regarding the company’s operations. <cmsannotation type="cmsannotation" annotationid="Capital infusion key to Vodafone Idea’s future" comment="subhead" text="Capital infusion key to Vodafone Idea’s future">Capital infusion key to Vodafone Idea’s future</cmsannotation> Capital infusion remains a key to Vodafone Idea’s future, according to analysts. The telco has been struggling to retain subscribers while its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Bharti Airtel have seen both their subscriber numbers as well as the average revenue per user (ARPU) climb up each quarter since FY22. In the company’s post-result investor call in Q2, Vodafone Idea’s chief executive officer Akshaya Moondra had said, ‘’We are trying to close the funding quickly so that some of the backlog of vendor payments that we have can be addressed.” Vodafone Idea needs funds not just to fund its capital expenditure requirements, but also to service its debt. According to a Motilal Oswal report, its current earnings before interest, taxes, depreciation and amortization (EBITDA) of ₹8,700 crore in FY23 is inadequate to service debt. Capex is another piece of puzzle that the telco needs to solve. Vodafone Idea is yet to roll out its 5G offerings even as Jio and Airtel 5G services have been available in several parts of the country since October 2022. “The much-awaited capital raise remains critical to provide immediate liquidity and invest in the rollout of 5G and extending 4G infrastructure. Vodafone Idea acquired 5G spectrum in the 3300Mhz and 26GHz bands in the recent auction (September 2022) but unlike Reliance Jio and Bharti Airtel, it has not deployed the spectrum and remains significantly behind in 4G network rollout too,” said the Motilal Oswal report. It remains to be seen if the equity conversion gives investors enough confidence about the future of Vodafone Idea, and whether it will be enough for them to infuse funds that the telco needs desperately. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-stocks-59844-crore-market-capitalisation-wiped-out-today-in-morning-trading/articleshow/97638076.cms">Adani group stocks continue to plummet – lose ₹59,844 crore in market capitalisation on Monday</a> <a href="https://www.businessinsider.in/business/corporates/news/adanis-stock-rout-can-impact-its-ability-to-raise-capital-or-refinance-debt-says-moodys/articleshow/97582403.cms">Adani’s stock rout can impact its ability to raise capital or refinance debt, says Moody’s</a> <a href="https://www.businessinsider.in/budget/news/budget-for-the-amrit-kaal-powered-by-capex-rooted-in-fiscal-consolidation/articleshow/97551916.cms">Budget for the Amrit Kaal: Powered by capex, rooted in fiscal consolidation</a>

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> reported a net loss of ₹7,990 crore in Q2 as compared to ₹7,231 crore in the same quarter, a year ago. </li><li>The telco also lost 5.8 million subscribers during the quarter, but its average revenue per user (<keyword id="107848" type="General" weightage="80" keywordseo="arpu" source="Orion">ARPU</keyword>) improved to ₹135 from ₹131 in the previous quarter. </li><li>The company’s CEO <keyword id="2786361" type="General" weightage="80" keywordseo="akshaya-moondra" source="Orion">Akshaya Moondra</keyword> maintained that Vi is engaging with lenders and investors to raise funds for network expansion and 5G rollout. </li></ul>Vodafone Idea’s troubles continue to worsen as its net loss widened to ₹7,990 crore in Q3, both on a year-on-year and sequential comparison. It was also higher than analyst estimates, albeit<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/vodafone-idea-q3-preview-debt-ridden-telco-may-report-wider-loss/articleshow/97863951.cms"> marginally</a>. The telco reported a net loss of ₹7,596 crore in Q2, and ₹7,231 crore in Q3 last year. On the other hand, its revenues grew 9.3% YOY to ₹10,621 crore. Sequentially, its topline was flat – the telco<a href="https://www.businessinsider.in/business/telecom/news/vodafone-ideas-q2-loss-widens-to-7596-crore/articleshow/95282354.cms"> reported</a> a revenue of ₹10,615 crore in Q2. Vi’s stock was trading flat in the first half on Wednesday at ₹7.7. <cmsannotation type="cmsannotation" annotationid="Subscriber base continues to shrink, but 4G user additions boost ARPU" comment="subhead" text="Subscriber base continues to shrink, but 4G user additions boost ARPU">Subscriber base continues to shrink, but 4G user additions boost ARPU</cmsannotation> Like its peers <keyword id="6354287" type="General" weightage="80" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword> and <keyword id="6354504" type="General" weightage="80" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>, Vodafone Idea also reported a slight uptick in its average revenue per user (ARPU) during the quarter to ₹135, as compared to ₹131 in the previous quarter, and ₹115 a year ago. Its ARPU is still significantly lower than that of its rivals Bharti <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> and Reliance Jio. While Airtel<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms"> reported</a> an ARPU of ₹193 in Q3, Jio<a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-net-profit-up-3-2-sequentially-at-4881-crore-in-q3-on-better-subscriber-mix/articleshow/97179677.cms"> reported</a> an ARPU of ₹178.2. Vi’s total subscriber base continued to shrink, declining to 228 million in Q3 from 234 million in the previous quarter. In the same period last year, Vi’s subscriber base stood at 247 million. On a positive note, Vi’s 4G subscriber base continued to increase. In Q3, Vi added 1 million 4G subscribers, taking the total to 121.6 million at the end of the quarter. Vi’s 4G subscribers as a percentage of its total subscribers increased to 53.2% during Q3, up from 51.5% in the previous quarter. Vodafone Idea’s Q3 in numbers: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY22 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,621 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,615 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,717 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,990 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,596 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,231 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ARPU </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹135 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹131 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹115 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">228.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">234.4 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">247.2 million </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4G subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">121.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">120.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">117 million </td></tr></tbody></table> Source: Company reports <cmsannotation type="cmsannotation" annotationid="Engaging with lenders and investors for 5G rollout says Vi" comment="subhead" text="Engaging with lenders and investors for 5G rollout says Vi">Engaging with lenders and investors for 5G rollout says Vi</cmsannotation> Even as its rivals Bharti Airtel and Vodafone Idea rolled out their respective 5G networks extensively across the country, Vi says it is still in talks with stakeholders for its 5G rollout. “We continue to remain engaged with our lenders for further debt fund raising as well as with other parties for equity or equity-linked fund raising, to make required investments for network expansion and 5G rollout,” said Akshaya Moondra, CEO, Vi. Vi acquired 5G spectrum worth ₹18,799 crore, payable in 20 annual installments. Its rivals Airtel and Reliance Jio<a href="https://www.businessinsider.in/business/telecom/news/jio-vs-airtel-which-one-will-offer-faster-and-more-reliable-5g-services/articleshow/93516727.cms"> acquired</a> spectrum worth ₹43,084 crore and ₹88,078 crore, respectively. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-posts-820-crore-net-profit-in-q3-gautam-adani-says-current-market-volatility-temporary/articleshow/97914997.cms">Adani Enterprises posts ₹820 crore net profit in Q3: Gautam Adani says current market volatility temporary</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-group-market-cap-falls-below-10-lakh-crore/articleshow/97907746.cms">Adani group’s market cap falls below ₹10 lakh crore as sell-off continues</a> <a href="https://www.businessinsider.in/business/corporates/news/nykaas-stock-plunges-4-2-after-its-q3-net-profit-slips-70/articleshow/97901748.cms">Nykaa’s stock plunges 4.2% after its Q3 net profit slips 70%</a>

Vodafone Idea Q3 net loss widens to ₹7,990 crore, average revenue per user edges up to ₹135

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s board of directors is scheduled to meet on October 21 to consider raising funds. </li><li>The meeting comes at a crucial time, when <keyword id="6375231" type="General" weightage="50" keywordseo="indus-towers" source="Orion">Indus Towers</keyword>, one of the main tower providers of Vodafone Idea, has demanded the telco pay up its dues. </li><li>Shares of the telco gained after the fundraising announcement. </li></ul>Vodafone Idea’s board of directors will meet on October 21 to consider fundraising via convertible debentures, the telco said in an exchange filing, without divulging details about the quantum of the fund raise. "We wish to inform you that a meeting of the board of directors of the company is scheduled to be held on October 21, 2022, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential/private placement basis to a vendor," Vodafone Idea said in its exchange filing. Convertible debenture is a long-term debt that can be converted into equity shares after a specified period. Vodafone Idea’s latest attempt to raise funds is for investing in its network and also to pay its dues to its service providers, including Indus Towers – a tower company in which rival telco Bharti <keyword id="15491" type="General" weightage="50" keywordseo="airtel" source="Orion">Airtel</keyword> holds a 47.76% stake. Notably, Vodafone Idea’s parent company, <keyword id="105732" type="General" weightage="50" keywordseo="vodafone-group-plc" source="Orion">Vodafone Group Plc</keyword>, also holds a 21.05% stake in Indus Towers. Vodafone Idea<a href="https://economictimes.indiatimes.com/industry/telecom/clear-dues-or-lose-tower-access-indus-towers-to-vodafone-idea/articleshow/94492219.cms"> reportedly</a> owes over ₹7,000 crore to Indus Towers. The tower company has asked the telco to clear dues or risk losing access to towers from November. Reacting to the news, Vodafone Idea’s shares rose 1% to ₹8.55. This is, however, still below the ₹10 level that the government is reportedly waiting for before converting its debt to equity, as part of the <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package announced in 2021</a>. The package gave telcos an option to go for a four-year moratorium on their adjusted gross revenue (AGR) and spectrum dues, among other things. <cmsannotation type="cmsannotation" annotationid="The tide that won’t stem" comment="subhead" text="The tide that won’t stem">The tide that won’t stem</cmsannotation> In 2022 so far, Vodafone Idea has lost over 12 million subscribers, according to data from telecom regulator TRAI. Its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Airtel continue to add subscribers at a rapid pace. <div type="image" title="Airtel Reliance Jio Vodafone Idea subscriber additions Jan-Aug 2022." msid="94963881" hostid="261" sizebytes="23682" caption="&amp;lt;p&amp;gt;Telecom subscriber trends in 2022 so far&amp;lt;/p&amp;gt;"></div> While the telecom sector is<a href="https://www.businessinsider.in/business/telecom/news/telecom-sector-to-ring-in-stability-in-q2-jio-and-airtel-expected-to-grow-stronger-vi-weaker/articleshow/94709309.cms"> expected</a> to ring in stability in Q2, analysts suggest Vodafone Idea will continue to grow weaker. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/maggi-maker-nestl-indias-net-profit-grows-8-3-to-668-crore-in-q2/articleshow/94960866.cms">Maggi maker Nestlé India’s net profit grows 8.3% to ₹668 crore in Q2</a> <a href="https://www.businessinsider.in/business/corporates/news/moonlighting-is-fine-as-long-as-it-is-unrelated-to-what-we-do-for-our-clients-says-lt-tech/articleshow/94958101.cms">Moonlighting is fine as long as it is unrelated to what we do for our clients, says L&amp;T Tech</a> <a href="https://www.businessinsider.in/business/news/jaypee-and-amrapali-groups-collapse-leaving-buyers-in-the-lurch/articleshow/94961447.cms">70,000 housing units in trouble after Jaypee and Amrapali groups head into financial trouble</a>

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

Just ahead of its mega <keyword id="20008249" type="General" weightage="20" keywordseo="FPO" source="keywords">FPO</keyword> opening to <keyword id="21332860" type="General" weightage="20" keywordseo="public-investors" source="keywords">public investors</keyword>, <keyword id="19899016" type="General" weightage="20" keywordseo="Vodafone-Idea" source="keywords">Vodafone Idea</keyword> (<keyword id="20062540" type="General" weightage="20" keywordseo="vil" source="keywords">VIL</keyword>) has announced closure of its anchor book allocation, raising about Rs 5,400 crore from marquee global as well as domestic investors, according to a statutory filing by the <keyword id="20132985" type="General" weightage="20" keywordseo="telco" source="keywords">telco</keyword>. This could be the third-largest anchor book after One 97 Communications and Life Insurance Corporation (LIC). One 97 Communications and LIC had raised Rs 8,235 crore and Rs 5,627 crore in the anchor round, respectively. In a notification to the exchanges on Wednesday, VIL said it has allotted 490.9 crore shares to 74 funds at Rs 11 apiece, which is also the upper end of the price band. This translated into a transaction size to Rs 5,400 crore. Of the total allocation to <keyword id="21330641" type="General" weightage="20" keywordseo="anchor-investors" source="keywords">anchor investors</keyword>, 79.52 crore stocks, or 16.2 per cent of the total, were allocated to five domestic mutual fund through a total of 11 schemes. Those who were allotted shares include GQG Partners Emerging Markets Equity Fund, Fidelity, UBS Fund Management, Abu Dhabi Investment Authority, Australian Super, Troo Capital, Morgan Stanley, Citigroup Global Markets Mauritius, and Jupiter Fund Management. Additionally, domestic investors, including Motilal Oswal Mutual Fund, HDFC Mutual Fund, SBI General Insurance and Quant Mutual Fund, were allocated shares in the anchor round. The Rs 18,000-crore FPO of Vodafone Idea will open for public subscription on April 18 and conclude on April 22, marking the biggest FPO in the country. The price band has been set at Rs 10-11 per share. Prior to this, the largest FPO in the Indian market was a Rs 15,000 crore share-sale by YES Bank in 2020. The fundraise would give the ailing telco the firepower to improve its positioning in the Indian telecom market, where it currently trails larger rivals such as Reliance Jio and Bharti Airtel, by a wide margin. The funds will also help VIL shore up finances for the much-delayed <keyword id="20366727" type="General" weightage="20" keywordseo="5G-rollout" source="keywords">5G rollout</keyword> and strengthening 4G services, and payment of vendor dues. On April 6, the VIL Board approved raising Rs 2,075 crore from promoter Aditya Birla Group and increasing its authorised share capital to Rs 1 lakh crore. Earlier this year, Vodafone Idea had outlined plans to raise Rs 45,000 crore through a mix of equity and debt as it looked to match services offered by rivals Reliance Jio and Bharti Airtel and arrest an alarming and prolonged subscriber churn. VIL has also been fighting a desperate battle for survival, saddled with debt of Rs 2.1 lakh crore and quarterly losses. According to Trai data, Vodafone Idea continued to bleed on the subscriber front. VIL lost 15.2 lakh wireless subscribers, plunging its mobile subscriber base to 22.15 crore in January, in sharp contrast to subscriber gains by Jio and Airtel.

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> today told analysts that another round of tariff hikes is likely before the end of 2022.</li><li>The telco also needs a tariff hike boost more than its rivals Airtel and Jio do, as it struggles to retain subscribers and its current ARPU levels are much lower than those of its rivals.</li><li>The telco lost 15 million subscribers and the gap between its total and active subscribers is increasing too. </li></ul>India’s third largest telecom provider Vodafone Idea today said that another tariff hike is possible before the end of 2022 as it looks for a margin boost to improve its liquidity. In an analyst concall today, Vodafone Idea’s CEO <keyword id="5188531" type="General" weightage="50" keywordseo="ravinder-takkar" source="Orion">Ravinder Takkar</keyword> said the “time is right to think about a further price hike”. “Tariff hike environment is right and we won’t hesitate to take leadership in hiking prices,” Takkar said. “Customers have taken November tariff hikes very well. Almost all of it has flown to our ARPU numbers. Another tariff hike is possible by the end of the year,” he added further, noting that average revenue per user or ARPU has increased consistently from ₹104 a year ago to ₹128 now. Even as it is earning more from its customers, it has lost 15 million subscribers during the same period. While its revenue grew nearly 14% to ₹10,407 crore in the first quarter as compared to last year, it posted a massive net loss of ₹7,297 crore. The gap between its total and active subscribers is also widening, suggesting that more users than before do not have an active plan. <cmsannotation type="cmsannotation" annotationid="Subscriber churn remains a big problem – Vi is betting on value added services to improve stickiness" comment="subhead" text="Subscriber churn remains a big problem – Vi is betting on value added services to improve stickiness">Subscriber churn remains a big problem – Vi is betting on value added services to improve stickiness</cmsannotation> For now, Vodafone Idea is betting on its <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-partners-with-nazara-tech-to-foray-into-mobile-gaming/articleshow/90198674.cms">partnership with Rakesh Jhunjhunwala-backed Nazara Tech for online gaming</a>, and other streaming services like Netflix, Amazon Prime Video, Hotstar, Zee5 and others to maintain subscriber stickiness. <div type="image" title="Vodafone Idea subscribers Q1 FY22 to Q1 FY23." msid="93348841" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea subscribers&amp;lt;/p&amp;gt;"></div> The only positive, though, is that the number of 4G subscribers have increased, from 113 million a year ago to 119 million now. Still, this is less than half of Vodafone Idea’s total subscriber base. <div type="Article" hostid="261" msid="93312184" title="5G services might kickoff in October but your mobile bills could rise sooner" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Consumer engagement is falling, too" comment="subhead" text="Consumer engagement is falling, too">Consumer engagement is falling, too</cmsannotation> What should also concern Vodafone Idea is consumer engagement on its platform, which has declined both in terms of voice as well as data consumption. <div type="image" title="Vodafone Idea data voice arpu Q1 FY22 to Q1 FY23." msid="93348873" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea&amp;#39;s consumer engagement metrics&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="5G will likely be at a premium to 4G, but rollout unknown" comment="subhead" text="5G will likely be at a premium to 4G, but rollout unknown">5G will likely be at a premium to 4G, but rollout unknown</cmsannotation> Thanks to its liquidity concerns, Vodafone Idea’s bids in the recently-concluded <a href="https://www.businessinsider.in/business/telecom/news/heres-how-much-mobile-bills-can-increase-from-5g-network-service/articleshow/93312184.cms">5G spectrum auctions</a> were 2.3x and 4.6x lower than its rivals Airtel and <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-posts-a-moderate-5-increase-in-profits-in-q1-fy23-adds-10-million-new-subscribers/articleshow/93058640.cms">Reliance Jio</a>, respectively. To make matters worse, the company has not committed to any particular launch date for 5G services, yet. Its rivals Airtel and Reliance Jio are <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-5g-services-could-be-launched-on-august-15/articleshow/93341992.cms">likely to launch</a> their services in this very month. Vodafone Idea’s financial metrics at a glance: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY23 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY22 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹10,407 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹10,229 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹9,144 crore </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-₹7,297 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-₹6,561 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-₹7,319 crore </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net margin </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-70% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-64% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-80% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">ARPU </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹128 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹124 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹104 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: Company reports The telco also lost over $10 million a day during Q1 FY23 – largely due to finance costs. Its limited resources have forced the telco to focus investments in its core circles and reduce capex as much as possible. This is evident from the fact that Vodafone Idea has undertaken refarming 2G and 3G spectrum to 4G to minimize costs and enhance its capacities. Takkar also said he hopes 5G will be at a premium to 4G, but that would also likely mean users will get higher data allowances to make up for it. While the company underlined that the ₹4,940 crore equity infusion by its promoters shows they are confident about its prospects, it refrained from revealing any information about future fundraising plans. <div type="javascript" title="Custom" contenttype=""><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nifty-sensex-fall-after-a-6-session-streak-amid-china-taiwan-crisis/articleshow/93341328.cms">Markets snap their six-day winning streak with a marginal fall</a> <a href="https://www.businessinsider.in/finance/news/rbi-and-us-fed-policies-are-more-similar-than-you-think/articleshow/93329850.cms">RBI and US Fed policies are more similar than you think</a> <a href="https://www.businessinsider.in/business/telecom/news/heres-how-much-mobile-bills-can-increase-from-5g-network-service/articleshow/93312184.cms">5G services might kickoff in October but your mobile bills could rise sooner</a>

VI betting on tariff hike as it lost over $10 million every day in Q1 FY23

<ul><li>Reliance <keyword id="2003276" type="General" weightage="80" keywordseo="jio" source="Orion">Jio</keyword> and Bharti <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> are waiting it out and getting their users hooked onto 5G before hiking tariffs. </li><li>Elevated subscriber churn has also acted as a barrier against <keyword id="891186" type="General" weightage="20" keywordseo="tariff-hikes" source="Orion">tariff hikes</keyword>, according to analysts. </li><li>Enhancing 5G utilization also lets Jio and Airtel grab market share from <keyword id="1553175" type="General" weightage="80" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>, which is yet to launch its 5G services. </li></ul>There is a broad consensus amongst both telecom companies’ management and analysts that the sector needs another round of tariff hikes, but <keyword id="6383126" type="General" weightage="100" keywordseo="telcos" source="Orion">telcos</keyword> seem shy of blinking first this time around amidst a rise in subscriber churn. While analysts have noted multiple times that tariff hikes are imminent, telecom companies are yet to bite the bullet. Bharti Airtel, the second largest telco, had said in Q2 that there is a<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-reports-89-yoy-increase-in-q2-net-profit-to-2145-crore/articleshow/95207348.cms"> “need for tariff correction”</a>, while Vodafone Idea said during its Q1 investor call that a<a href="https://www.businessinsider.in/business/telecom/news/vi-betting-on-tariff-hike-as-it-lost-over-10-million-every-day-in-q1-fy23/articleshow/93348828.cms"> tariff hike is necessary</a> before the end of 2022. Curiously enough, neither telco touched upon tariff hikes in their respective Q3 earnings. Global brokerage Jefferies had noted that it expects Bharti Airtel and Reliance Jio to hike tariffs by 10% each in Q4 of FY23, FY24 and FY25. So far, however, tariff hikes have not materialized and telcos don’t seem to be in any major rush going by the lack of commentary in this regard in their latest earning calls. <cmsannotation type="cmsannotation" annotationid="Telcos want to get users hooked onto 5G" comment="subhead" text="Telcos want to get users hooked onto 5G">Telcos want to get users hooked onto 5G</cmsannotation> The high cost associated with the acquisition of 5G spectrum and the rollout of 5G services means that tariff hikes remain a key trigger for telecom companies. However, for now, Airtel and Jio are focusing on expanding the availability of their 5G networks and getting users hooked onto the higher data speeds before hiking tariffs. According to the analysts Jefferies, Jio and Airtel are also grabbing market share at the expense of Vodafone Idea, which is struggling to roll out its 5G services due to a fund crunch. “We believe there is greater uncertainty on tariff hikes in the near term given that large capacity creation with 5G will shift focus on boosting utilization. Moreover, focus on market share will rise amidst moderating data subscriber growth and Vodafone Idea’s worsening situation,” said a Jefferies report. <div type="image" title="Telecom market share April-Dec 2Jan-22_31.13_35.49_23.15 Feb-22_31.37_35.28_23.09 Mar-22_31.55_35.37_22.83 Apr-22_31.61_35.5_22.68 May-22_31.62_35.69_22.56 Jun-22_31.63_36_22.37 Jul-22_31.66_36.23_22.22 Aug-22_31.." msid="98123501" hostid="261" sizebytes="30376" caption="&amp;lt;p&amp;gt;Telecom market share FY23&amp;lt;/p&amp;gt;"></div> Telcos are also wary of the elevated subscriber churn, and a tariff hike at this point could worsen it. “We are not baking in any tariff hikes at all in the calendar year 2023. We believe it will be difficult for operators to do another 20% hike, as subscribers found it difficult to absorb the last 20% hikes, leading to heightened churn,” JP Morgan said in a note. However, analysts at Jefferies were relatively less bearish on the prospect of tariff hikes, saying that we could see one round of hikes by March 2023. Going forward, the brokerage believes that telcos could resort to hiking 4G tariffs and driving up usage of 5G services by offering larger data bundles at a lower cost per GB. “While 5G is unlikely to drive up ARPUs without tariff hikes, it will help Bharti Airtel and Reliance Jio gain market share from Vodafone Idea," JP Morgan added. For context, Reliance Jio’s 5G services are available in 277 cities across the country, while Airtel’s 5G services are available in 133 cities. Vodafone Idea, on the other hand, is yet to officially roll out its 5G services. Going forward, the direction telcos choose in monetising 5G will be key in determining the timing and quantum of tariff hikes. <cmsannotation type="cmsannotation" annotationid="Lack of tariff hikes results in marginal uptick in ARPU" comment="subhead" text="Lack of tariff hikes results in marginal uptick in ARPU">Lack of tariff hikes results in marginal uptick in ARPU</cmsannotation> The lack of tariff hikes has also resulted in only a marginal uptick in the average revenue per user (ARPU) of the three telcos. While Jio’s ARPU <a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-net-profit-up-3-2-sequentially-at-4881-crore-in-q3-on-better-subscriber-mix/articleshow/97179677.cms">increased 1.8%</a> sequentially, Vodafone Idea <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-q3-net-loss-widens-to-7990-crore-average-revenue-per-user-edges-up-to-135/articleshow/97939836.cms">reported</a> a 3% increase. Airtel, on the other hand, <a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms">reported</a> a 1.6% increase due to premiumisation. The increase in 4G usage also helped Jio and Airtel post a moderate uptick in their revenue – while Jio’s revenue increased marginally by 2.4% sequentially in Q3, Airtel reported a 3.7% topline growth. According to the analysts at JM Financial, this revenue uptick was due to an increase in 4G subscribers – while Jio’s subscriber base grew by 4.55 million, Airtel reported an increase of 3.39 million during the December quarter. Vodafone Idea, on the other hand, reported a decline of 7.81 million subscribers during this period. However, the analysts at Jefferies believe that the government picking up a 33% stake in Vodafone Idea has improved the outlook for tariff hikes in the longer term. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/indian-banks-dream-run-could-soon-be-over-as-deposit-rates-start-catching-up-to-lending-rates/articleshow/98117219.cms">Indian banks’ dream run could soon be over as deposit rates start catching up to lending rates</a> <a href="https://www.businessinsider.in/tech/news/microsoft-bing-chatgpt-gives-death-threats-tries-to-break-a-marriage-and-more/articleshow/98091746.cms">Skynet, anyone? Microsoft’s Bing AI gives death threats, tries to break a marriage and more</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-stocks-meltdown-continues-on-monday/articleshow/98084715.cms">Adani group stocks meltdown continues on Monday – Adani Enterprises sees the biggest decline</a>

You Searched For "Vodafone Idea share price" and got 12 results

Jio, Airtel, Vi record customer loss post tariff hike, BSNL becomes only gainer in July

PTI

Vodafone Idea to raise Rs 615 crore through preferential shares allotment to Nokia and Ericsson India

ANI

Jio, Airtel, or Vodafone? Best postpaid and prepaid plans with OTT subscription

Divyanshi Sharma

Mobile recharge packs to get more expensive as telcos gear up for another round of tariff hikes: Report

Kunal Kambli

Vodafone Idea seals Rs 30,000 crore deal with Nokia, Ericsson, and Samsung for 4G and 5G expansion

BI India Bureau

Airtel, not Jio, to gain the most from Vodafone Idea's troubles

Rounak Jain

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

Rounak Jain

Vodafone Idea Q3 net loss widens to ₹7,990 crore, average revenue per user edges up to ₹135

Rounak Jain

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

Rounak Jain

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

PTI

VI betting on tariff hike as it lost over $10 million every day in Q1 FY23

Rounak Jain

Wary of churn, telcos want to get users hooked onto 5G before hiking tariffs

Rounak Jain

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