December 1, 2020

Airtel Well-Equipped Than Jio To Attract 2G Customers; Might Lure Vi Feature Phone Users

Airtel is expected to snatch Vi feature phone customers as users do not have to make the extra investment on the smartphone. This development comes at that time when Reliance Jio is planning to bring affordable 4G handsets in the country.

Reliance Jio has joined hands with Google as it wants to attract all 2G users towards its platform; however, analysts close to the development said that Airtel is in a better position to lure 2G subscribers.

“Vi has been losing customers in the feature phone segment, and Airtel is better placed than Jio to grab incremental market share as Vi’s 2G customers can migrate to Bharti at no additional investment,” brokerage firm Goldman Sachs said.

Vi has lost 34 percent of customers ever since the company announced the merger. The company has lost customers due to a lack of investment in the infrastructure. Industry analysts also believe that Reliance Jio might not increase the prices as new additions of users have reduced. Notably, Jio has so far added 7.3 million customers, while Airtel added 14 million users.

Vi (Vodafone-Idea) Might Lose 50-70 Million Customers In The Next One Year

On the other hand, rating agency Fitch said both Reliance Jio and Airtel might attract Vi customers. The agency said that there are high chances that both will achieve 80 percent of the telecom market share against 70 percent share now. Furthermore, the rating agency added that Vi might lose 50 to 70 million customers in the next year.

Meanwhile, Vi is likely to increase prices by Diwali this year, whereas Reliance Jio and Airtel will wait to increase the prices as both are leading the sector and doing good in terms of revenue and market share. Besides, both companies have acquired a sufficient share of the average revenue per user.

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