ARPU of VI is ₹104, ₹3 less than the previous quarter. Jio, Airtel and Vi, though, reported user bases of 441 million, 321.23 million and 255.4 million in their respective June quarter earnings numbers. High spectrum charges and liquidity has affected the firms in this industry. The player Vodafone Idea has been struggling with its ARPU, find here the key problems Vodafone Idea is facing and strategies to overcome these problems.

1. Vodafone Idea
• Consulting Assignment
Group 8

2. Problem Statement
With reducing ARPU Airtel and Vi has been struggling to keep pace. Firms in the industry has moved
other sources of revenue, the same cannot be said about Vodafone Idea.
ARPU of VI is ₹104, ₹3 less than the previous quarter. Jio, Airtel and Vi, though, reported user bases
of 441 million, 321.23 million and 255.4 million in their respective June quarter earnings numbers.
High spectrum charges and liquidity has affected the firms in this industry.
Vodafone Idea's problem is its adjusted gross revenue (AGR) dues owed to the government. Due to
which it cannot invest in additional spectrums. Vodafone Idea owes more than ₹ 50,000 crore as
outstanding AGR dues to the centre.
Airtel on the other hand can absorb the AGR that it has to pay.
The Retrospective Tax that it had pay while acquiring Retrospective Tax Hutch Essar 2007, is
supposed be returned by the government, the timeline hasn’t been given.

3. As Is
The government's relief package for the
telecom sector allows Vodafone Idea to defer
a cumulative payment of nearly Rs 1 trillion,
which means Rs 24,000-Rs 25,000 crore
annually, over four years. Vodafone Idea has
paid the government $1.07 billion in AGR
dues, but it still owes roughly Rs 50,000 crore
and is saddled with a net debt of Rs 1.91
trillion.
Scenario 1

4. As Is
Scenario 2
Declining Market Share

5. As Is
Scenario 3
Declining Revenue
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
50,000.00
Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
TOTAL REVENUE

6. Competitor
Analysis

7. Gap Analysis
Consumer Expected Service vs
Management Perception of consumer
expectations
Translations of perceptions into service
quality specifications vs consumer
expectations
Actual Service delivery vs Management
Perception of service quality
External Communication to Consumer vs
Service Delivery

8. Gap 1
Consumer
Expected Service
vs Management
Perception of
consumer
expectations
Management’s perception Consumer expectation
• Customer care is excellent
in problem resolution
• Voice quality and data
speed are the parameters
that matter most
• Customer care personnel
should be able to take few
basic decisions on their
own
• Network Coverage and
Value to services are the
parameters judge providers
in today’s competitive
industry

9. Translations of
perceptions into
service quality
specifications vs
consumer
expectations
Management’s perception Consumer Expectations
• Urban region (Tier 1,2)
cities should have access
to all the features (value-
added services)
• Rural region should have
access to network and 2G
internet services
• Providing delight through
customer care
• Better Bandwidth
• Rural region - Should
have a minimum network
availability(else tie-up
with other service
providers to ensure
connectivity)
• Waiting time during
service call should be
minimised

10. Actual Service
delivery vs
Management
Perception of
service quality
EMPLOYEES Supply vs Demand Customers
Because third party
people will be in
contact with
customer at most of
their touch points ,
the customer can’t
have good
experience
There is no cap on
the number of
connections to be
given in particular
area
Most people face lot
of difficulties in
availing the
vodafone’s offering
The third party
people will have
profit maximization
as their main
motive than
providing better
customer
experience
The third party
people will act in
greed and provide
more connections
than the company
can manage
They are unable to
explain their issues
to customer care
executive when they
face any issues

11. External
Communication
to Consumer vs
Service Delivery

13. Implementation &
Solutions
• Strategy for middle triangle
Stable Known Reduction Strategy
• Market Timing- Stable
• Market Operated – Known
• Action – Reduce Cost
Approach
• Brand Activation
• Increase Product Width
• Collaboration ( Practo, OTT)
• Improve Customer Interaction
• Reduce Supply and Demand Gap

14. Measurements
Customer Acquisition Cost
Customer Retention
Brand Awareness before and after business
model change
Area Coverage
Net Promoter Score

15. Recommendation
Customer services should be
more seamless both in order to
reach and resolution of problem
Network coverage are should be
wider with focus northeastern
market
Investment aggressively in new
technology like 5G and related
services at par to its competitor