Vodafone Idea has no intention of exiting any circles
The six circles in the questions were Himachal Pradesh, Bihar, Odisha, Jammu and Kashmir, North East and Assam.
A news report has been floating online since Friday and noted that Vodafone Idea could be closing its operations in six circles due to the extremely low-income market share in these areas.
But Vodafone Idea has also firmly denied that it would not close operations in the circles that have been pointed out in a new report. Vodafone Idea, in his statement, denied that he would not resort to such a measure.
Vodafone Idea RMS Stooping Low in Select Markets
The six circles in the questions were Himachal Pradesh, Bihar, Odisha, Jammu and Kashmir, North East and Assam. To be noted, this new report came from the Bank of America Merril Lynch, which also observed that in these telecom circles, Vodafone Idea had less than 20% revenue market share. These six circles were listed as the probable places where Vodafone Idea could shut operations. JM Financial also presented a similar report saying that the telecom operator had lost revenue in the circles where he had completed the network integration exercise.
In reply to these reports of Vodafone Idea exiting these circles, the telco said, "We categorically deny and dismiss this speculation as completely baseless and factually incorrect. Vodafone Idea remains committed and will continue to serve its millions of customers in these circles." Now, this statement approves that Vodafone Idea would not be withdrawing operations from the above-listed circles.
Vodafone Idea RMS Low in Top Telecom Circles
Though Vodafone Idea is not going to shut down its operations, it is still essential to note that if the telecom operator arrives at the situation of less than 15% Revenue Market Share, then it would mean that these circles would turn EBITDA negative for the telco. The former CEO of the company Balesh Sharma resigned recently after that Ravinder Takkar has been appointed as the new CEO.
The report on the revenue share of Vodafone Idea notes that the current revenue market share in the states listed above stands at 5.5% in Himachal Pradesh, 9.1% in Bihar, 7.8% in Odisha, 5.6% in Jammu and Kashmir, 12.5% in North East and 15.3% in Assam. In Karnataka, the telecom has 16.7% revenue market share, and it is 14.6% in Bangalore city. Also, the highest dip in revenue for Vodafone Idea has happened in metro cities like Delhi and other A-list circles. But, as of now, Vodafone Idea has no intention of exiting any circles.