Vodafone Idea (Vi) is currently fighting for its survival. That is why the company is trying to fix its position by adopting different methods. According to Halfil, Vi is severing ties with a total of 25,000 retail partners across India. The telecom company has taken this step mainly to reduce their own expenses. Incidentally, Vi has connected around 4-5 lakh retailers across the country with its business. But most of these large number of retailer partners worked for Vi as well as other telecom operators. According to a latest report by ET, the Akshay Mundra-led telecom has dropped a ‘short list’ of multi-brand retailer partners that are not delivering profitable business.
Vodafone Idea cuts ties with 25,000 retailer partners
Vodafone Idea or Vi mainly ‘targeted’ those retailers, which were giving negative or negative returns for a long time. As a result, the company has decided not to spend money on such partners. Apparently, this move by Vi will help reduce overall costs and at the same time achieve better revenue margins.
Reliance Jio and Bharti Airtel have become the leading telecom operators in the country by adding record numbers of subscribers in the last few years. Why are you suddenly thinking about the two telcos? In fact, both Jio and Airtel have been able to boost their revenue by siphoning customers from Vodafone Idea. Under such circumstances, Vodafone Idea had to reduce its costs in nine ways. So that the company can invest that money in a profitable scheme that will attract old users to come back and attract more new customers. Especially as the company is consistently losing customers every quarter, if it fails to acquire new customers during this time, the company will collapse very soon.
Besides, Vi currently needs to raise the tariffs of its plans to increase revenue. Because without ‘tariff hiking’, telecom companies cannot improve their ‘Average Revenue Per User’ (ARPU) graph. According to a recent survey report, the company’s ARPU (Average Revenue Per Subscriber) in the fourth quarter of 2022 was Rs 135, which is the lowest among other private telecom operators. As a result, if Vi doesn’t take some good steps to increase their revenue soon, it will be in serious financial trouble soon.
Incidentally, Vodafone Idea is currently active in raising funds. The company is even going to propose an equity infusion of Rs 14,000 crore in Halfil. It is learned that half of the said amount will be provided by Vodafone UK and Aditya Birla Group (ABG).