The Vi Turnaround Strategy: Why Higher Retailer Commissions are Key to 4G & 5G Growth

The Vi Turnaround Strategy: Why Higher Retailer Commissions are Key to 4G & 5G Growth

NEW DELHI: In a daring strategic pivot to claw back market share and compete head-on with its deep-pocketed rivals, Vodafone Idea (Vi) has rolled out an unprecedented set of commissions and incentives, effectively launching a ‘retail gold rush’ across its distribution network.

The aggressive move comes as the joint venture between the UK’s Vodafone Group PLC and India’s Aditya Birla Group intensifies its efforts following the commercial launch of its 5G services in 22 cities this March.

Three Times the Competition

The core of Vi’s new strategy lies in making its services far more lucrative for the local retailer, who serves as the frontline for customer acquisition.

• Base Commission Leap: Vi is now offering a flat 3% commission on all recharges and new SIM activations. This is a dramatic escalation, significantly higher than the 1% currently offered by competitor Jio and the 2% from Airtel, according to distributors and partners.
• The 19% Incentive Shock: On select recharge plans, the telco is offering commissions that skyrocket up to a staggering 19%, a monumental jump from the industry’s previous typical rate of around 3%.

Big Bets on MNP

Beyond new customers, Vi is aggressively targeting subscribers looking to switch from rival networks using Mobile Number Portability (MNP). The operator is providing a significantly higher payout of ₹306 for port-ins, compared to just ₹187 for a fresh activation on the same plan. Retailers stand to earn even more with additional MNP cash bonuses ranging from ₹75 to ₹100.

For the retail partners who drive the business, the message is clear. “Vodafone’s commission rates are the best and it has started giving better incentives,” confirmed Manoj Kumar, a Delhi-based retailer, highlighting the immediate impact of the new structure.

By making itself the most financially rewarding partner for local distributors, Vi is signaling a firm commitment to leverage its vast physical retail network as a powerful engine for customer acquisition in India’s hyper-competitive 5G era. The war for the customer is now officially being fought on the streets, with Vi arming its foot soldiers with the highest incentives in the telecom sector.

4G and 5G Infrastructure:

• Capex and 4G Expansion: Between October 2024 and June 2025, Vi spent nearly Rs 9,800 crore on capital expenditure, adding over 4,800 new 4G towers.
• 4G Coverage Increase: Its 4G population coverage increased from 77% to 84% during that same period.
• 5G Rollout: Vi’s 5G services are operational in 22 cities across 13 circles (including Mumbai, Delhi, Bengaluru, Ahmedabad, Jaipur, Patna, Kochi, and Surat), with plans to expand to all 17 circles where it holds 5G spectrum.

Subscriber Losses:

• Significant Improvement: The efforts have significantly slowed subscriber losses. Vi lost 0.5 million users in the April-June quarter, which is reported as the lowest loss since the Vodafone India and Idea Cellular merger in 2018.
• Comparison: This quarterly loss is a major improvement compared to the average quarterly loss of 3.7 million in the previous financial year (FY25).
• Total Subscribers: The telco ended June with 198 million subscribers.

Then-CEO Akshaya Moondra reportedly described the April-June quarter as a “decisive turnaround quarter,” attributing the “lowest subscriber decline since merger” to the investments made in 4G coverage expansion over the preceding three quarters.