Vodafone Idea is ramping up 4G network and subscribers. Vodafone Idea added 11,123 4G sites in 3QFY19, including 9,066 sites on TDD and 4G network’s population coverage has improved to ~60% (from 40-50%) and is targeting 95% by March-20. This helped it register 13% QoQ rise in 4G subscriber additions to 9.5m in 3QFY19, but 4G penetration is still low at 19% of 387m subscribers.
Management highlighted that Vodafone Idea extended the minimum Arpu plan (which makes recharge of Rs35/month necessary to keep numbers active) on a staggered basis to all circles. This resulted in 35m subscriber disconnections in 3QFY19 to total 387m and we factor another 22m decline in 4QFY19.
