Vodafone Idea has launched a new mobile service for Rs 45 per month — targeting its voice-only 2G subscribers – as part of the strategy to reduce churn of its subscribers at the lower end.
Vodafone Idea on Friday said its mobile phone users on 2G, 3G and 4G network fell to 320 million in the June quarter from 334.1 million in the previous quarter. Vodafone Idea has also lost its number one position to Reliance Jio. Mukesh Ambani-promoted Reliance Jio is ahead of Vodafone Idea in terms of both mobile phone subscribers and revenue.
Vodafone Idea said the new recharge plan offers calls at 1 paisa per second giving more value to the customers.
“We witnessed that customers were seeking more value from validity packs after two or three recharges. So, we introduced a Rs 45 pack pan-India last week which gives full talk time and calls at 1 paisa per second. The response has been encouraging so far,” Balesh Sharma, chief executive officer of Vodafone Idea, said.
Vodafone Idea’s high ARPU customers shifted to lower plans. On the other hand, low ARPU customers, who had recharged under a minimum Rs 35 per month plan during the fourth quarter, did not use the network during the April-June period.
Vodafone Idea had introduced service validity vouchers on a national basis during Q3 of last fiscal, which required customers to make a minimum recharge of Rs 35 with 28 days validity. This resulted in a decline of 53.2 million subscribers as low ARPU customers migrated their spending from multiple SIMs to single SIM.
Vodafone Idea’s net profit during the April-June quarter touched Rs 4,908 crore against Rs 4,882 crore in the preceding quarter.
First quarter revenue of Vodafone Idea was Rs 11,270 crore, registering 4.3 percent drop quarter on quarter.