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Airtel, Vodafone Idea’s user base plunges after minimum recharge plan rollout

The companies took the step for higher ARPU

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MUMBAI: Two leading telecom operators, Vodafone Idea Ltd (VIL) and Airtel have faced a significant reduction in user base after the rollout of minimum recharge plans. The companies took the step to clean up low-paying subscriber base for focusing on higher average revenue per user (ARPU).

VIL reported a 35 million reduction in user base in the third quarter of FY 19 and another 53 million during the quarter. As per a report by research firm Morgan Stanley as cited by The Hindu Business Line, VIL’s total subscriber base was 334 million as of March end.

The report also added that Airtel reported a reduction of 48.5 million users during the third quarter of the year. However, the telco operator is yet to disclose the fourth quarter numbers due to the ongoing rights issue.

While the subscriber market share of VIL fell to 32 per cent in FY19, compared with 36 per cent in FY18, Airtel was steady at 26 per cent. Both the firms reported quarter-on-quarter improvement in ARPU in the last quarter.

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