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Q3 performance: Loss of subscribers because of price hike, says Vodafone Idea

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3 years ago

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Q3 performance: Loss of subscribers because of price hike, says Vodafone Idea

Vodafone Idea on Monday downplayed subscriber churn for the October-December 2021 quarter, saying it was a result of tariff hikes, which led to SIM consolidation, while keeping its 4G base growing. The company also expects to complete the fundraising this fiscal year.

“Typically, two or three things happen when the price goes up, one is that recharges are a bit slower over the course of a few days, and two is that we’re seeing a phenomenon of SIM consolidation…a lot of our subscriber losses can be attributed to The price went up,” Ravinder Takkar, managing director and chief executive officer of Vodafone Idea, said on the analyst call regarding the third-quarter results.

When asked if the tariff hike also affected consumer usage, Takkar said the impact was small, as prices were still very affordable. Vodafone Idea lost 5.8 million subscribers in 3Q22 (compared to 2.4 million in 2Q22), while the 4G subscriber base edged up to 117 million from 116.2 million in 2Q22. Vodafone Idea’s average revenue per user (Arpu) increased from Rs 109 in the previous quarter to Rs 115 in the October-December quarter due to price hikes.

The company expects the full impact of the price hikes to be seen in the fourth quarter. “The next quarter will have a big impact,” Takkar said. Regarding the inquiry of another price increase, Takkar said that it will definitely increase the price, but it has to look at the time, which may happen in 2022 or 2023.

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“The last rate hike (November 2021) was almost two years later, so we certainly think the next rate hike is less than two years away,” he added. The executive also reiterated that the company expects Financing completed in fiscal year. It has been planning to raise Rs 25,000 crore for more than a year. Following the fundraising, the company’s capital expenditure will also trend upward as the company will focus on increasing 4G coverage.

The company expects to return a bank guarantee (BG) worth Rs 17,000 crore. It has received licensing fee-related BGs worth over Rs 1,000 crore from the Department of Telecommunications (DoT). The bulk of the BG, totalling Rs 15,000 crore, is related to spectrum and will be returned by the DoT shortly after completion of the formalities.

Complete News Source : financialexpress

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

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1 day ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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ALSO READ- At 65.2%, Maharashtra records highest voter turnout since 1995 assembly election

Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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