Vodafone revenue up 2.3% in Dec quarter

Data growth remained strong, with data usage increasing 64%, supported by an increasing proportion of 3G users, the company said

Telecom operator Vodafone India had 2.3 per cent revenue growth at Rs 11,022 crore in the December 2015 quarter,from Rs 10,766 crore a year before in the same period.

“(The) quarterly growth rate slowed due to further competitive pressure, impacting both voice and data prices, and data customer growth,” Vodafone said.

In the data segment, usage on its network reaching 85,231 terabytes from 51,889 TB in the comparative period. “Data growth remained strong, with data usage increasing 64 per cent, supported by an increasing proportion of 3G (third-generation technology) users, now totalling 25.9 million. However, the rate of revenue growth slowed in the quarter, driven by increased price competition.”

In the preceding July-September quarter, its India revenue had grown 5.6 per cent. “Excluding the impact of regulatory changes, including mobile termination rate cuts, roaming price caps and an increase in service tax, service revenue grew 7.6 per cent,” Vodafone said.

The average revenue per user declined to Rs 174.9 in the reported quarter, from Rs 189.1 a year before. Vodafone, however, said the decline in average revenue per user was offset by an increase in customer base.

"While total voice traffic continues to grow, this was more than offset by a further decline in voice revenue per minute, which fell 9.8 per cent year-on-year as a result of ongoing price competition.”

Adding: “We continued to grow our total customer base, driven by a particularly strong performance in voice, adding 5.4 million customers in the quarter.” There were 193.6 mn customers at the end of December 2015.

Under its ‘Project Spring’, the company added 7,600 in 3G sites, taking its population coverage in targeted urban areas to 94 per cent. It also launched 4G (fourth-generation) services in Karnataka and Kerala. These would be available in further three circles by the end of the year, covering around 45 per cent of our current data revenue, it said.