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Reliance Jio’s free voice and data offer is beginning to take a toll on other operators future plans and usage. Vodafone, on Tuesday, said that it has put off its planned Initial Public Offer in India to next financial year due to volatitilty in the market.
Speaking to Business Line, Sunil Sood, CEO, Vodafone India said, “There has indeed been some volitality in the market. We are still growing but the growth rate may have slowed down.”
The UK-based telecom group said, “A new entrant (RJio) has recently launched free trial services for an extended time period and commercial price plans that were at a significant discount to prevailing market pricing, resulting in competitive responses from other operators. This has created a high degree of uncertainty over a range of commercial planning assumptions including future pricing, profitability and market structure.”
Vodafone Group on Tuesday also said that it has recorded non-cash impairment charge of 5.0 billion euros during the six months ended September 30 in respect of its investment in India.
Despite these headwinds, Sood said that pricing could not a differentiator for long. “We continue to focus on best customer service and we have always been harbingers of change. Competition also helps us to be more efficient and quicker.”
Vodafone India service revenue grew to Rs 22,579 crores in first half of this fiscal comapred to Rs21,321 crores in the first half of last year , registering a growth of 5.9 per cent
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