The key takeaway from telecom giant Vodafone Idea’s first ever analyst meeting was this—the company doesn’t expect the two-year-old tariff war to continue. From here on out, the company believes that tariffs will cease the downward spiral they have been on since Reliance Jio first sent the telecom industry into a tizzy by lowering data prices and forcing competitors to follow suit. This belief carries hope for Vodafone Idea, something that’s been in short supply since it announced its maiden quarterly results just over a week ago.
The predicament the company finds itself in is not something most would have seen coming just two years prior.
Trapped in transition: The rough road ahead of Vodafone Idea
It was pitched as a match made in heaven. But a mountain of debt, an exodus of customers, and a patchy network have conspired to leave Vodafone Idea reeling
The merger between Vodafone India and Idea Cellular was meant to create an entity capable of fending off the Jio juggernaut
But Vodafone Idea's maiden quarterly results have been disastrous, with debt rising and profitability falling
The company's top management has attempted to put a positive spin on things, but Vodafone Idea faces an uphill road ahead
To survive, it must stem its declining ARPU, ringfence subscribers, and sort out its patchy network. But even this may not cut it