Vodafone Idea looks to grow postpaid user base

ITS POSTPAID SUBSCRIBER COUNT DECLINED FROM 20.9 MN IN FY21 TO 20 MN IN FY22

NEW DELHI: Vodafone Idea Ltd plans to grow its postpaid user base and add more high-paying customers to its network through targeted marketing initiatives as part of its broader strategy to boost its average revenue per user.

Ravinder Takkar, chief executive, Vodafone Idea, said the key challenge of payment mechanism for postpaid plans through online mode has been resolved and the time is ripe to examine the prepaid-postpaid divide within its customer base.

“We are working on something which will help clarify that (distinction), which will explain (to consumers the benefits of both plans) in a slightly different manner than we have in the past because we believe there’s an opportunity to get rid of postpaid-prepaid distinction and provide the right package for you that fits your lifestyle better,” Takkar said in a recent interview.

“Back in the day, say 10 years ago, it was a payment mechanism issue. Now, as an industry, we can do a better job of explaining to customers the benefit of being a postpaid customer versus a prepaid customer and vice versa,” he added.

The change in strategy comes at a time when the debt-ladden carrier is seeking to raise ₹20,000 crore from external investors in debt and equity. It is also awaiting final approval for conversion of interest on moratorium of its spectrum related dues, into equity, which will make the government the largest shareholder in the company.

Vodafone Idea’s prepaid subscribers accounted for 91.8%, or 223.8 million, of the total 243.8 million users, as of March. A year earlier, its prepaid base was 92.2% (246.9 million) of its customer base of 267.8 million. According to its March quarter report, the telco’s postpaid subscriber count fell from 20.9 million in FY21 to 20 million in FY22. However, despite the drop in postpaid user base, it leads Bharti Airtel’s 18 million as of March. Airtel’s prepaid base is at 94.5% of its more than 326 million customers.

Experts said Vodafone Idea’s move could herald the start of an industry trend since the issue of making physical payments for postpaid plans had been done away with the rapid adoption of online payment systems offered by banks, carriers’ own apps or third-party apps that offer either incentives, rewards, or cashbacks for paying phone bills online.

Vodafone Idea’s prepaid plans with unlimited calls, 1.5 GB data per day and Vi movies, start at ₹299. Its postpaid plans, starting at ₹399 a month offer 40 GB data, unlimited calls, 200 GB roll over data and 150 GB extra data if a recharge is done online.