Vodafone Idea Lost Leadership in Five Circles
In the second half of fiscal 2023, the telecom players are expected to raise prepaid mobile tariffs again. This will further boost the revenues of the telcos and improve their ARPU. However, there would be downtrading of recharges at a much higher level after the prepaid tariff hike expected to come later in the year. So some of the gains will be offset because of that.
Vodafone Idea’s (Vi) revenues are likely to grow by 20% to 25% in fiscal 2023. As per CRISIL, the other two private telcos are going to see their revenues going up by the same margin. The growth in revenues will be there because of the rise of tariffs in 2021. CRISIL said that due to the full-year impact of tariff hikes, the ARPU (average revenue per user) figure of all the private telcos should go up by 15% to 20%.
However, the growth would be partially offset because of the downtrading of recharges, said CRISIL.
CRISIL said that because of losing subscribers for consecutive quarters, the telco lost leadership in over five circles. Regardless, because of the tariff hikes, the overall revenues for the telcos are going to go up. According to CRISIL, the EBITDA for the telcos in fiscal 2023 would expand by 180-220 bps this fiscal.
The tele-density in the country is going to grow. This means more wireless service consumers will be available in the market for the telcos to add to their subscriber base. Vi could benefit from this as the revenues will go up.
After the tariff hikes, SIM consolidation took place in the telecom sector, which saw over private telcos losing about 37 million users. However, the active subscriber base of the telcos grew steadily by 29 million. This will help the telcos in achieving a better ARPU figure in the short term.
In the second half of fiscal 2023, the telecom players are expected to raise prepaid mobile tariffs again. This will further boost the revenues of the telcos and improve their ARPU. However, there would be downtrading of recharges at a much higher level after the prepaid tariff hike expected to come later in the year. So some of the gains will be offset because of that.
Vodafone Idea (Vi) offers its Rs 319 plan with a validity of 31 days. With this plan, users get 2GB of daily data along with unlimited voice calling and 100 SMS/day. This means that the total amount of data offered by this plan is 62GB. This is not all that the users get with this plan.
Vodafone Idea also offers additional benefits to its users, including Binge all night, weekend data rollover, Vi movies and TV classic access from where the users can enjoy the benefits of unlimited movies, originals, live TV and much more on the app.
Users also get up to 2GB of backup data every month, at no extra cost. Note that post-consumption of FUP (fair usage policy) data of 2GB, the speed will reduce to 64 Kbps. Also, post the daily 100 SMS limit, charges will be Rs 1 per local SMS and Rs 1.5 per STD SMS.
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