Telecom network operator Vodafone India has posted 3.4 percent drop in revenue to €1,519 million or $1,675 million in the first quarter ended 30 June 2016.

Vodafone India added 3,300 new 3G sites and 9,700 4G sites. Vodafone will be going slow on 4G network expansion in India due to the high cost of spectrum.

Organic service revenue growth of Vodafone India was 6.7 percent.

Vodafone Group revenue fell 4.5 percent to €13,377 million or $14,758 million. The organic service revenue growth of Vodafone Group was 2.2 percent.

Vodafone CEO Vittorio Colao said: “Our growth momentum in AMAP remains strong, with excellent performance in South Africa, Turkey and Egypt and ongoing recovery in India.”

Vodafone India achieved organic service revenue growth of 6.4 percent against 5.3 percent in Q4 fiscal 2016 as voice revenue returned to growth and regulatory impacts reduced.

The slower pace of growth mainly reflects the reversal of the leap-year effect and lower intra circle roaming revenues. Data browsing revenue of Vodafone increased 22.3 percent, showing slow down from prior quarters, reflecting lower customer growth.

Vodafone India added nearly 3 million new data customers as its data customer base rose to 69.7 million from 66.8 million one year ago. The 3G / 4G customer base increased 46 percent to 32.3 million. Smartphone penetration in its four biggest urban areas is now 54 percent. Vodafone does not share specific subscriber base for its 4G customers in India.

The telecom operator noted that its voice revenues returned to growth as competition eased, despite lower average minutes of use per customer. Total mobile customers increased 1.4 million giving a closing customer base of 199.4 million in the Indian telecom market.

Vodafone India investment

Vodafone India has added 3,300 new 3G sites in the quarter. Vodafone India has 59,000 3G sites at present with a population coverage of 96 percent of target urban areas.

Vodafone India has 9,700 4G sites with coverage of 45 percent of its data revenues across five key circles. It expects 4G coverage to increase to over 60 percent of its data revenues by year-end, ahead of the upcoming telecom spectrum auction in the country.

The company said preparations continue for a potential IPO of Vodafone India.

In its emerging markets, Vodafone has the 3G/4G mobile data customer base of 88.9 million, up 50.7 percent. In India, Vodafone India launched 4G in five circles, covering 45 percent of data revenues, and expect to reach over 60 percent in the current financial year.

“Given the high cost of spectrum, Vodafone India intends to take a disciplined approach to further 4G rollout,” said the company in a statement.

Vodafone India did not share its future plans relating to the forthcoming spectrum auction in September. Telenor recently said it will not participate in the spectrum auction in India.

Baburajan K