If Vodafone-Idea goes bankrupt, it will reportedly affect around 140 to 150 million 2G subscribers. Industry executives and analysts reveal that most of these users will go to Reliance Jio. One can note that Jio 4G will offer at a higher price than 2G. They added that since Jio does not have a 2G network, users have to pay a higher price when buying new 4G phones.
According to sources, it is noted that if Vodafone Idea goes bankrupt in a review petition filed in the Supreme Court, it will also affect more than 27 crore subscribers. Of these, Vodafone Idea has 11.9 crores wireless broadband or 3G / 4G subscribers and the rest are 2G subscribers. As Airtel’s consumer prices are high, only those who can afford it will come to its network. Many 2G customers, like ordinary day labourers, use low-quality phones, which affects the quality of the network. An industry executive said Airtel may not want it.
As for Jio, those users will have to think about buying a new phone, which is not practical for the majority of such subscribers, experts said, adding that in both these cases V2G customers will suffer.
Vi’s low-end 2G handset users will have to use Jio’s and Airtel’s low-end 4G handsets or 4G feature phones if it does not exist. Analyst Ashwinder Sethi also said that these users will have to pay subsidies to buy 4G handsets. Reliance Jio’s is all set to launch its low-cost smartphone on September 3, developed in partnership with Google. There is no revelation of the price. Industry observers say Mukesh Ambani will subsidize this.
Vodafone-Idea’s survival issues came last week. This has happened when Aditya Birla Group Chairman Kumar Mangalam stepped down from the Birla Telecom Board. He had written to the government to transfer the Vi Group’s shares to any public sector or domestic financial institution. This could sustain the company’s existence. He also said that without the immediate support of the government, telecoms would be heading for an irreversible collapse.