Vodafone Idea’s revenue market share has fallen to an all-time low of 14.5% in the July-September quarter, as the company witnessed share loss in all 22 circles, according to data by Telecom Regulatory Authority of India (Trai).
In the preceding quarter, the company’s revenue market share was at 15%. Analysts said that the company lost higher market share in metros, A and B-circles and a lower market share in C-circles. The reason for the same can be attributed to porting out by users to to Jio and Airtel as Vodafone Idea’s network is seen as weak due to poor investments.
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However, post the recent fundraise via follow-on public offer (FPO) and equity infusion by promoters, the company has started making investments in network expansion.
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“VIL’s (Vodafone Idea) broad-based market share loss indicates that market share gains would continue to benefit Jio and Bharti in the near term till VIL completes its network investments,” Jeferries said in a note analysing Trai data.
Vodafone Idea has been losing mobile subscribers for a while despite investments in 4G capacity and coverage expansion. In the July-September quarter, the company lost 5 million subscribers sequentially owing to tariff hikes.
The tariff hikes, however, also helped Vodafone Idea to report revenue growth for the fourth straight quarter.
At the recent call with analysts, Vodafone Idea CEO Akshaya Moondra had said, the company has already started seeing improvements on key metrics in areas where the investments have been made. However, “at this point they do not convert to an increase in revenues or reducing the loss of subscribers,” he said.
The company has so far not been able to close its Rs 25,000 bank debt round, to service a capex of Rs 50,000-55,000 crore over the next three years.
Compared to Vodafone Idea, revenue market shares of Jio and Airtel,
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