In Q2 FY24, Vodafone Idea (Vi), India’s third-largest telecom operator, experienced a significant boost through a government initiative in collaboration with the Rajasthan government. The partnership aimed to provide free smartphones and mobile connections to females in the state under the scheme known as Indira Gandhi Smartphone Yojna (IGSY). This strategic move by the government, geared towards attracting potential female voters as elections approached, proved beneficial for Vi, resulting in the distribution of over 2.5 million new connections.
Vi achieved a milestone in Q2 FY24 by adding the highest number of 4G subscribers in a single quarter since its 2018 merger. The telco gained 1.8 million 4G users during the quarter and recorded its lowest-ever quarterly user base decline of 1.6 million. As of the end of September 2023, Vi’s 4G subscriber base reached 124.7 million.
A senior official from the Rajasthan government confirmed Vi’s significant contribution to the scheme by providing a majority of the mobile connections. BSNL was the other telecom operator participating in the initiative. Initially, Airtel and Jio were contenders, but they withdrew when the government stipulated that, along with the connections, they must also provide free smartphones.
Vi’s substantial contribution to the scheme, particularly in offering likely 4G-enabled smartphones, facilitated the addition of 4G subscribers. This initiative is expected to contribute to Vi’s long-term revenue growth from the 4G user base. Notably, the current government has pledged to increase the initiative’s reach from 2.5 million to 10 million if brought back to power, presenting an opportunity for Vi to further expand its 4G subscriber base in the coming year.