Even as Vodafone Idea appeared to have arrested its subscriber loss in the first quarter of 2024, subscription data by the Telecom Regulatory Authority of India (TRAI) shows that Vi’s subscriber loss is widening again after successful fundraising efforts. In April 2024, Vodafone Idea successfully raised ₹18,000 crore in a follow-on public offer, which is seen as a turning point for the belaboredoperator. However, three months on, Vi continues to lose subscribers ever-increasingly.. 

TRAI’s monthly subscriber reports reveal that Vi lost 9.2 lakh wireless subscribers in May. The operator lost 7.3 lakh wireless subscribers in April and 6.8 lakh wireless subscribers in March. These numbers will likely widen going forward as the operator increased its tariffs by 20 per cent in July, prompting some  subscribers to cancel their telecom subscription.

In the same three-month period, BSNL significantly reduced its subscriber loss. In May, BSNL lost nearly 5 lakh wireless subscriptions, compared to 23 lakhs in March.

The revival plan outlined by Vodafone Idea’s management for funds raised includes large investments in the operator’s 4G network to arrest subscriber loss particularly in their 2G subscriber base, which cannot  upgrade to 4G plans. 

In July, when private telcos increased their tariffs, BSNL’s employees union noted that delays in the rollout of the PSU’s 4G network are causing BSNL subscribers to leave in droves for private players. 

Tata Consultancy Services, largely a tour-de-force in the IT sector, is establishing BSNL’s 4 G network. TCS’ BSNL contract contributes significantly to its India business, which grew by nearly 60 per cent in Q1FY25. Last week, management indicated that TCS will complete its 4G rollout for BSNL before the end of FY25. 

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