Very soon Vodafone Idea will be note down in telecom industries’ history – like Reliance Communication, Uninor, MTS, VIDEOCON, AIRCEL,VIRGIN which all company shutdown the business for huge debt.
Shares falls in Stock market of vodafone idea share price orvodafone idea share
Vodafone idea news: From the government to the customers are worried about the telecom company Vodafone-Idea (VI). In many ways, this news is not good for the telecom sector that Vodafone-Idea is in this condition. The question in the minds of most people is how the coming days will be for VI. Will the company wrap up its business or will it be able to re-establish itself in the battle of subscribers. However, experts and major rating reporting agencies agree that the days ahead are not good for Vodafone-Idea, which is burdened with huge debt.
VI may lose 5-7 million users in next 12 months
One bad news about Vodafone-Idea is that its subscribers can slip out of its hands. In the coming 12 months i.e. 1 year, it may lose about 5-7 crore users. At the same time, Bharti Airtel and Reliance Jio can get the benefit of this opportunity. Both these companies want to attract the customer base of VI. Airtel is preparing to increase its existing tariff to around Rs 200 per user (ARPU) in the next 12 months. There is also a plan to collect money to invest in 5G network in the country.
Fitch Ratings has estimated that Vodafone-Idea may lose millions of its customers. In the next 12 months, the company may face a setback of 70 million users, which will not be good for the company according to the current times. The credit rating agency has expressed such an estimate in one of its reports. Fitch Ratings says that Reliance Jio and Airtel have an opportunity to strengthen the revenue market share. Companies can further strengthen their network by issuing rights. This will help them in adding new customers.
Airtel may increase tariff
Airtel has announced to increase the existing tariff plans for prepaid users to increase its ARPU by the end of FY22. To capture the revenue market, other companies will have to do the same. All telecom companies can increase tariff in the coming months for increasing ARPU.
ARPU needs to be improved
According to the report of Fitch Ratings, it is necessary for Airtel to increase the tariff plan at this time. She has also announced this. In such a situation, it will not be easy for him to take back this decision. The tariff will have to be increased by Rs 200 in the next 12 months and Rs 300 in the long term. Shifting prepaid users from 2G to 4G plans in the next one year is also full of challenges. All telecom companies will have to improve the ARPU from 170 to 180 level.
