Vodafone Idea (Vi), the third-largest, or rather, the poorest performer amongst all the private operators in the country, should delay introducing tariff hikes for as long as possible. Vi hasn’t seen good days since the month of October in 2019. That was the last time the telco displayed a net gain in addition of mobile subscribers. We are not counting the latest report from the Telecom Regulatory Authority of India (Trai) for the month of January. This is because Vi said that it had made an “inadvertent error” in providing the number of subscribers it gained to Trai for the month. Had it been the correct numbers, it would have meant that after more than a year, Vi showed a net gain in the addition of mobile subscribers in a month. What should the telco do right now to stay afloat and compete with Airtel and Jio? Let’s find out.
Vi Should Delay Tariff Hikes
Assuming that even though the numbers submitted to Trai were wrong, it wouldn’t have been too off the mark. Thus, Vi might have added a good number of subscribers none the less. Regardless of that, Vi should delay tariff hikes. The telco requires more market share. A larger market share will mean improved revenues for the company. This is important for Vi to target. If it increases tariffs, it will lose more market share. Yes, the increased tariffs will help the telco in improving its average revenue per user (ARPU); still, it wouldn’t be worth it. Because higher ARPU with a less number of subscribers will only keep the company where it is now. The aim of the telco should be to increase both the market share and ARPU. To do that, Vi must delay tariff hikes for as long as possible. The telco has some very unique offerings in its portfolio. Thus it should be patient and keep offering amazing benefits at the price it is offering them right now.
