If Vodafone Idea aka Vi files for bankruptcy, then it can lead to direct pressure not only on the users of the company but also on Jio, Airtel besides BSNL, see 6 reasons.
New Delhi. Vodafone-Idea became the largest telecom company in India after the merger with Idea. But Vodafone-Idea has reached the third position with 270 million users today. It would not be wrong to say that the last few months have been very difficult and challenging for this telecom company. In June 2021, Vodafone-Idea lost its highest number of subscribers at 42,89,519, according to data from the Telecom Regulatory Authority of India (TRAI). The main reason for this is the financial crisis that the company is facing right now.Also Read: These facilities are available with tax exemption in PPF, know about your benefits
However, where on one hand the financial crisis is a big problem for the company. At the same time, going bankrupt will prove to be equally difficult for the entire telecom sector including the users. This can be a troublesome time for the users because due to all these woes, the cheap plans available for both voice and data can be eliminated. The failure of Vodafone-Idea can prove to be bad news for mobile users in India. So let’s know the main reason for this.Also Read: ICICI launches ICICI direct markets app know all about it
from Vodafone to Jio and Airtel will put pressure on the network of companies.
If Vodafone files for bankruptcy, people will migrate to Jio and Airtel. Due to this, a very troublesome situation can be seen. The sudden influx of millions of customers can create network capacity issues for these companies. Also, there can be a lot of pressure on the network.Also Read: Axis Bank Changing Cheque Payment Rules From 1 September 2021 Positive Pay
The collapse of Vodafone leads to a monopoly in the Indian telecom market:
The fall of Vodafone means that India’s telecom market may be in a monopoly situation. Only Reliance Jio and Bharti Airtel will have the entire market. BSNL-MTNL have been seen within a range for years, so it is also fair to say that there may not be much profit for these two companies in this. A monopoly is a situation where two companies together own all or most of the market share. It is good for companies but it cannot be called good for customers.Also Read: EPFO Aadhaar Card Linking Mandatory For All EPF Accounts From 1 September 2021
Vodafone’s end will hinder technological progress and affect service quality
If the Vodafone company ends, it means that the cost to maintain the telecom infrastructure will have to be shared between two companies Airtel and Jio instead of three. This will increase the cost of operation cost for both. This will increase the burden on both the companies and may affect the service quality which will not be good for the users at all.
Increase in operational cost may increase the price of mobile tariff:
The telecom sector is already under a lot of economic pressure. All companies have financial problems. Over the years, ARPUS has actually come down quite a bit. Telecom companies are already very worried about this. As a result, telecom companies are no longer in a position to bear the increase in operational cost. This means that any increase in cost will ultimately be borne by the users. Because companies will make mobile bills expensive to recover the cost.Also Read:New rules for banking with SBI YONO; Know what happened before login
5G launch may be delayed:
Telecom companies need more money for the launch of 5G network, due to which the limit of its launch can increase. If the Vodafone company shuts down, the sudden increase in users for both the companies will put more burden on their existing networks. In such a situation, companies will be left with no other option but to upgrade. This could simply mean that the funds that have been deposited for 5G will have to be diverted.
Reliance Jio is not ready for 2G customers:
Jio company is not ready for 2G users yet. This means that 2G users will have to pay more or buy a new 4G phone if the above situation occurs. Vodafone Idea still has several million subscribers on the 2G network. If the company decides to shut itself out from the financial woes, these users will need to bill higher while switching to other telecom operators or buy a new 4G phone which will ultimately impact the users and increase the burden on them.
