The Indian arm of the UK’s Vodafone Group Plc., which reported a service revenue of EUR1,385 million for the quarter ended June, however said SIM consolidation in the low-value segment coupled with growing data usage levels suggested a return to stabler revenue flows in the coming quarters.
Vodafone India posted a near 8.3% drop in service revenue in the fiscal first quarter as its voice and data business continued to degrade under peer competitive pressure triggered by Reliance JioInfocomm’s low-priced offerings to its users.
Vodafone is in the process of merging its Indian operations with Idea Cellular to create a jointly managed company which would be India’s largest carrier and provide stronger competition to Jio and Bharti Airtel. The deal, which is awaiting various regulatory clearances.
Vodafone India’s data browsing revenue declined 20.4% in the April-June period from 15.9% in the previous quarter, reflecting further ARPU dilution from “lower unitary prices”, which declined 67%. According to the company, stimulated a 78% on-year growth in monthly data usage per customer at 1 GB.
While Vodafone managed to retain high value customers in the June quarter, it conceded that the growth in its mobile customer base at 2.9 million was lower than 4.4 million in the previous quarter of the year.