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Balesh Sharma<\/a> told reporters on Thursday the the company will invest in key and profitable areas, focus on controlling costs in non-priority ones, reduce number of price plans and maintain a minimum low value recharge for subscribers, so all come under a billing cycle in a bid to raise average revenue per user (ARPU).
He added that the company would focus on expanding 4G at this “juncture” as India is not yet 5G ready.
Vodafone Idea, with 422 million customers, also aims to use big data and analytics to improve ARPU, a key industry parameter that has plunged since Reliance Jio<\/a> Infocomm’s entry in September 2016, which triggered a brutal price war. Vodafone Idea stock closed down 7.4% to Rs 41.10 on the BSE Thursday.
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“Industry ARPU has gone down from already low level of $2.6 about two years ago to $1.4. This is unsustainable,” Sharma said. China has an ARPU of $8.4.
Sharma said the industry is bleeding but is hopeful prices will “repair materially” on consolidation.
Sharma’s comments came on a day Vodafone Idea chairman Kumar Mangalam Birla again met telecom secretary Aruna Sundararajan. Birla had recently met senior government officials as well, to discuss severe cash crunch in the sector and seek a deferral on some spectrumrelated payments due in March.
Vodafone Idea, which reported its first quarterly results last week, clocked an ARPU of Rs 88 compared with Bharti Airtel<\/a>’s Rs 101 and Jio’s Rs 131. It posted a net loss of Rs 4,974 crore with operating margin of 8.1% and a net debt of Rs 112,500 crore.
Sharma said it wasn’t just Vodafone Idea but the whole industry that was suffering. He expects better times in the hope that customers who paid high tariffs for fewer services won’t mind paying a bit more in future for better services.
The chief executive, however, clarified that Vodafone Idea has no plans to raise tariffs as of now.
“Where in the world of economics will you give away a product below price when you have unlimited demand and limited supply? (I am) very confident prices will repair materially,” Sharma said, adding that after consolidation, all operators are cash negative. “How long can one keep putting in cash, be negative in cash...how will funding happen?”
The telco, which recently announced its plan to raise Rs 25,000 crore via equity, has chalked out a capex plan of Rs 33,200 crore for FY19 and FY20, including Rs 27,000 crore of fresh capex and Rs 6,200 crore drawn from synergies largely due to network integration for expanding 4G network to protect its turf against erstwhile market leader Bharti Airtel and Jio.
The operator said it will concentrate on expansion of 4G, and plans to increase its coverage to over 80% of India's population by March 2020, from the current 50%.
The company has been on several cost rationalisation measures since inception and Sharma said the hiring freeze was one such initiative. It will continue to build on the strength of both its brands, Vodafone and Idea, he said.
In an investors’ meet on Wednesday Vodafone Idea said integration of the two telcos and their respective networks is moving ahead of plan and the company will be able to unlock annual synergies worth Rs 14,000 crore by FY21, compared with the earlier estimated FY23. The telco, like its rival Airtel, will not subsidise handsets but continue to offer bundled offers with multiple handset manufacturers to bring down smartphone price points, the CEO said.
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Balesh沙玛周四告诉记者,该公司将投资重点和有利可图的领域,关注在非优先的控制成本,减少数量的计划和维持一个最低价格低价值给用户,所以受到一个账单周期,以提高每用户平均收入(ARPU)。
他补充说,该公司将专注于扩大4 g在这个“接缝”5 g在印度还没有准备好。
沃达丰的想法,拥有4.22亿用户,还将使用大数据和分析来提高ARPU,关键行业以来依赖参数,大幅下跌JioInfocomm进入2016年9月,这引发了一场残酷的价格战。沃达丰股票收盘下跌7.4%,至41.10卢比想法周四疯牛病。
“行业ARPU已经下降从低水平的大约两年前2.6美元,至1.4美元。这是不可持续的,”Sharma说。中国的ARPU 8.4美元。
Sharma说,行业出血但希望价格将“修复物质”整合。
沙玛的评论是在一天沃达丰想法主席库玛贝拉Mangalam Sundararajan的电信部长阿鲁娜再一次见面了。贝拉最近政府高级官员会面,讨论行业严重的现金短缺和寻求一些spectrumrelated延期支付3月份到期。
沃达丰的想法,上周首次公布季度业绩,定时的ARPU Rs 88相比Bharti Airtel的Rs 101和Jio Rs 131。该公司公布净亏损4974卢比的营运利润率为8.1%,净负债112500卢比。
Sharma说,这不仅仅是沃达丰痛苦的想法,但整个行业。他预计好转,希望顾客支付高额关税少服务不会介意付出更多在未来更好的服务。
沃达丰首席执行官,然而,澄清概念没有计划现在提高关税。
”,在世界经济将你放弃一个产品以下价格当你有无限的需求和有限的供给?(我)很有信心价格将修复物质,”Sharma说,合并后,所有的操作符都是现金负。“一个可以借多久把现金,是负的现金……资金将如何发生?”
电信,最近宣布计划通过股票筹集25000卢比,记录了33200卢比的资本支出计划FY19 FY20,包括新鲜的资本支出和27000卢比6200卢比从协同效应很大程度上是由于网络集成4 g网络,以保护自己的地盘扩张对昔日的市场领导者Bharti Airtel和Jio。
操作符表示将专注于4 g的扩张,并计划增加其覆盖率超过80%的印度人口由2020年3月,从目前的50%。
该公司一直在几个成本合理化措施自《盗梦空间》和Sharma说,招聘是一个这样的倡议。它将继续建立在其品牌的力量,沃达丰(Vodafone)和主意,他说。
周三在一个投资者的满足沃达丰想法说整合两个电信公司和各自的网络正在提前计划,该公司将能够解锁年度FY21协同效应价值14000卢比,估计FY23早些时候相比。电信,就像它的竞争对手Airtel不会补贴手机但继续提供捆绑与多个手机制造商降低智能手机的价格点,首席执行官说。
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