Vodafone decline

Reliance Jio creates a hurricane in the telecom sector. Most of the famous telecom companies facing problems with increasing the popularity of Reliance Jio. The British multinational telecommunication company Vodafone is confronted with a decline in its India revenue at Rs 10,556 crore during October-December 2016. Vodafone recorded 4.7 per cent decline in India Revenue.

Demonetization and entry of Reliance Jio may be the reason for the Vodafone decline in India revenue. The Teleco company has reported the revenue of same period a year ago is Rs 11,077.63 crore. Nonetheless, the mentioned decline in euro for the period was 5.5 percent at 1,452 million euro compared to 1,536 million euro during the period under review.

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 Vittorio Colao, Vodafone Group Chief Executive, said that “In AMAP (Africa, Middle East & Asia Pacific), our strong organic performance in South Africa and Turkey was partially offset by India, where the sector is affected by free services from the new entrant.”

He also added that intense competitive pressure is expected in India in the fourth quarter for which Vodafone is taking some serious actions like a series of commercial actions, including the extension of 4G services to 17 circles.

There was an unfavourable impact on prepaid top-up volumes during the quarter because of demonetization, said Vodafone.

“This drove a quarter-on-quarter decline in our active data customer base to 65 million (from 69.6 million in second quarter), mainly reflecting fewer 2G users. Our 3G and 4G customer base declined slightly quarter-on-quarter to 35 million, and smartphone penetration is 35 per cent,” Vodafone said.

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The browsing revenue growth of Vodafone in India is slowed from 16% in second quarter of the current financial year to 0.6% in the third quarter due to the free services from the new entrant.

The average revenue of Vodafone decline per user is 10 percent to Rs 158 in the third quarter ended Dec 31, 2016, from Rs 174 a year ago. Overall the Vodafone revenue declined by 3.9 percent, 13,687 million euros from 14,247 million euros during the period under review.