Vodafone was one of the biggest telecom companies in India post its merger with Idea. Now, Vodafone-Idea (VI) is relegated to 3rd place with a total of 270 million users. The recent months have been quite difficult on the ailing telco and VI failure. The Telecom Regulatory Authority of India (TRAI) says that Vodafone-Idea lost 42,89,519 subscribers in June 2021.
The huge subscriber loss is the result of financial woes that the company is going through. Still, the company is in financial crisis, it going bankrupt is likely to be as tough for the entire telecom sector as well as mobile users. It might bring an end to super-cheap mobile bills, including both voice and data. However, some of the key reasons “why Vodafone Idea’s failure may be ‘bad news for mobile users in India” are discussed below.
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6 Key Reasons “why Vodafone Idea’s failure may be ‘bad news for mobile users in India”
- A sudden rush of subscribers from Vodafone to other telecom companies like Airtel and Reliance Jio in order to put their network under huge pressure
- Vodafone’s bankrupt will create a duopoly in the Indian telecom market. the limited choice is always bad for consumers
- Vodafone’s downfall will impede or slow down the technological advancements in the sector. It may also affect service quality
- High operation costs may lead to a hike in mobile tariff
- 5G launch may get wrecked
- Reliance Jio is not equipped to take on 2G customers. Thus, 2G users will have to pay more or buy new phones
