Vodafone Idea (VI) is struggling to sustain its existence for the time being. That is why the company is opting for different measures to reduce costs.

Vodafone Idea is Presently in Dire Need of Funds. Without Increasing the Tariffs, VI will not be able to Enhance its ARPU. Consequently, it has Taken Measures by Severing Ties with 25000 of its Retail Partners.

Vodafone Idea also known as VI, resolves to cease paying commissions to these 25000 retail partners in order to save funds. Speaking of retail partners, VI included almost 4-5 lakh retail touchpoints from all over the country in their business. The company has mainly targeted those partners who were multi-brand operators, which means they offered services to many telecom companies. These retailers had been giving the company negative returns for a long time. So cutting them loose will help VI reduce overall costs and maintain a better profit margin.

On the other hand, it has been reported that Vodafone India had already been losing its customer base. In the fiscal year 2023, VI’s Average Revenue Per User (ARPU) was Rs.135, which is the minimum among all the telecommunication companies currently existing in India. At the same time, Telecom Regulatory Authority of India (Trai) data confirms  VI’s decrease in wireless users by 1.21 million in March. This resulted in bringing down its subscribers count from 237.9 million to 236.7 million.

Reliance Jio and Bharti Airtel  – these two companies have gained a record number of subscribers in the past few years which currently makes them the two topmost telecom service providers of the country. Why bring up these two telcos? Actually, Reliance Jio and Bharti Airtel both the companies have snatched away VI’s customers in order to maintain their increased revenue generation.

In this condition, it was extremely necessary for VI to reduce cost by hook or by crook. This saved fund could be used by the company to invest in profitable schemes, which might lead old customers to rejoin and also interest new customers to consider subscribing to VI.

Incidentally, VI is very much eager to accumulate funds at this moment. In that effort to recover its business, VI has considered an equity infusion of Rs. 14000 crores. According to the reports, the mentioned amount of funds will be contributed by the company’s existing promoters- Aditya Birla Group (ABG) and Vodafone UK.

The promoters previously put in a sum of Rs.5000 crores as the government’s telecom revival package in September 2021. The rest of the amount will be invested as fresh equity.

Hope the information provided here was helpful. If you like our content, please like and share it. Don’t forget to give us your feedback in the comment section. Your love and support help us immensely to keep going forward and provide you with more such content. 

#VI#Vodafone_Idea#Reliance_jio#Bharti_Airtel#Trai#Retail_Partners#Cost_cutting_measures#Equity_Infusion#Telecom_service_provider#Telco#Telecom_revival_package#ARPU#FY23#Multi_brand_Retailer#Vodafone_UK