# Vodafone Idea gains subscribers but funding challenges persist Telecom operator adds 1.6M broadband users while offering free roaming to boost revenue - **Source:** [Today's Paper](https://www.business-standard.com/todays-paper) - **Published:** 2026-09-30 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/4d8db856-d81f-4b24-9b0d-603d2b06523f ## Subscriber growth amid challenges Vodafone Idea added 1.6 million mobile broadband subscribers in Q2 2023 despite its ongoing financial struggles. The telecom operator has been losing market share to rivals Reliance Jio and Airtel in India's competitive 3-player market. This marks the second consecutive quarter of net additions after years of subscriber losses, suggesting potential stabilization in its customer base. ## ARPU-focused strategy The company introduced free international roaming on select premium plans to attract high-value customers and improve average revenue per user (ARPU). Vodafone Idea's ARPU currently trails competitors at ₹139 compared to Jio's ₹180.50 and Airtel's ₹200. The roaming offer targets business travelers and high-spending customers who contribute disproportionately to revenue. ## Persistent funding gap Despite subscriber gains, Vodafone Idea continues to struggle with its ₹2.1 trillion debt burden. The company has been unable to secure the ₹20,000 crore in external funding it has sought for network expansion and 5G rollout. Its promoters (Vodafone Group and Aditya Birla Group) have declined to inject additional equity, leaving the government as largest shareholder with 33% stake. ## Spectrum payment obligations The telecom faces upcoming spectrum payment installments totaling ₹8,837 crore due in 2023-24. These include deferred payments from previous spectrum auctions. While the government has provided a four-year moratorium on spectrum and AGR dues, the accumulated liabilities continue to constrain Vodafone Idea's ability to invest in network quality and compete effectively. ## Market share dynamics Vodafone Idea's subscriber base now stands at 221.4 million, down from 408 million at the time of the 2018 merger. The company holds 19.2% of India's wireless market, compared to Jio's 38.6% and Airtel's 32.4%. Its broadband user additions indicate some success in retaining and attracting data-heavy customers despite network quality concerns. ## 5G rollout delays Unlike competitors who have launched 5G services in multiple cities, Vodafone Idea has yet to announce concrete 5G rollout plans due to funding constraints. This technological lag risks further erosion of its premium customer segment as rivals offer next-generation services. The company has focused instead on 4G network expansion in key markets. ## Government lifeline The Indian government's 2022 rescue package converted Vodafone Idea's interest dues into equity, providing temporary relief. However, the conversion came with conditions including a freeze on fresh equity issuance below ₹10 par value. This limits the company's ability to raise capital through equity markets without government approval. ## Strategic crossroads Vodafone Idea's modest subscriber gains demonstrate its residual brand strength, but the funding gap threatens long-term viability. The company must either secure major external investment or risk becoming a niche player serving price-sensitive segments. Its ability to monetize the subscriber base through ARPU growth will be critical to attracting investors. ## Sources covering this story - https://www.business-standard.com/markets/news/subscriber-gains-positive-but-vodafone-idea-yet-to-bridge-funding-gap-126093001272_1.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._