Multiple Connection Helped Vi Reduce Customer Loss In Q3 FY21

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Vi (Vodafone-Idea) has lost customers again in Q3 of the FY21. The telecom operator has lost two million users in the same quarter as against eight million in Q2. Besides, the operator has managed to increase its average revenue per user to Rs. 121 from Rs. 119 in the second quarter.

Multiple Connection Helped Vi Reduce Customer Loss In Q3 FY21

 

However, analysts believe that the prime reason behind Vi losing only two million customers is that people have started using multiple SIM or mobile connections again. They said that migrants are returning to cities and start using their mobile connections. Similarly, analysts suggested that the addition of Reliance Jio has been decreased as JioPhone is not attracting new users and this helped Vi to reduce its loss.

"Vi managed to rein in customer losses, primarily as multiple-SIM usage seems to be happening once more with migrants returning to cities and using their feature phones regularly," Nitin Soni, senior director at Fitch said.

Vi 4G Data Demand: Details

Meanwhile, brokerage firm ICICI Securities said that several users of India's third-largest telecom operator Vi (Vodafone-Idea) are using feature phones, and 55 percent of customers are not using broadband services in their homes. The firm said that the telecom operator showed some improvements in Q3 due to the increasing demand for 4G data.

The brokerage firm further added that "Vi's cash Ebitda at Rs. 2,100 crores benefitted from amortization of subscriber acquisition cost of Rs. 330 crores the over the (expected) lifetime of subscribers, which was earlier expensed in P&L".

Vi Fundraising Plans In India: Details

The analysts also pointed out that Vi needs to increase the tariff soon to boost its operations in the country. It is worth noting that Vi has confirmed that its board is approving the fundraising up to Rs. 25,000 crores via equity. Furthermore, the telecom operator is in talks with several investors for the fundraising.

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