Vodafone Idea (Vi), India’s third-largest telecom operator, has significantly hiked retailer commissions to reclaim market share and accelerate its 5G rollout, offering the industry’s highest incentives at 3% for recharges and new SIM additions. The announcement, made on October 3, 2025, comes as Vi invests nearly Rs 9,800 crore in capex from October 2024 to June 2025, expanding 4G coverage to 84% and launching 5G in 22 cities since March 2025. For telecom investors, channel partners, and industry watchers searching Vodafone Idea retailer commissions hike, Vi incentives 2025, or telecom market share strategy, this aggressive push—compared to Jio’s 1% and Airtel’s 2%—includes up to 19% on select plans and Rs 306 for MNP port-ins, aiming to stem subscriber erosion amid ARPU pressures. With shares up 1.4% to Rs 6.58, the strategy aligns with tariff hike bets for 2025, potentially lifting Vi’s fortunes in a Rs 3 lakh crore sector.
The commission overhaul, effective immediately, targets 5 lakh+ retailers to drive footfall and activations.
Commission Hike Details: Highest Incentives in the Sector
Vi’s revised structure prioritizes recharges, SIM sales, and MNP, with tiered rewards to incentivize volume:
- Recharges and New SIMs: 3% commission, vs. Jio’s 1% and Airtel’s 2%.
- Select Plans: Up to 19% on high-value recharges.
- MNP Incentives: Rs 306 for port-ins (vs. Rs 187 for fresh activations); bonuses of Rs 75-100.
- Redemption: Monthly via scratch cards; quarterly/annual rewards like international trips.
Delhi retailer Manoj Kumar told ET: “Vi’s rates are the best—better incentives for us.”
| Incentive Type | Vi Commission | Jio | Airtel | Notes |
|---|---|---|---|---|
| Recharges/New SIMs | 3% | 1% | 2% | Highest in Industry |
| Select Plans | Up to 19% | Standard 3% | Standard 3% | Volume-Driven |
| MNP Port-Ins | Rs 306 | Lower | Lower | +Rs 75-100 Bonus |
Strategic Push: Network Expansion and Market Recovery
Vi’s move counters a 2% subscriber loss in Q2 FY25, with 4G users at 125.9 million. Capex of Rs 9,800 crore added 4,800 towers, lifting 4G coverage from 77% to 84%.
- 5G Rollout: Live in 22 cities; aims for 50% coverage by FY26.
- ARPU Focus: Hike bets for 2025 could add 2% ARPU; aligns with Jio/Airtel.
- Retailer Network: Targets 5 lakh partners for grassroots push.
CEO Akshaya Moondra: “Tariff hikes are inevitable for sustainability.”
Market Implications: Vi’s Comeback Bet
With 230 million subscribers (down from 280 million in 2018), Vi’s 18% share lags Jio (40%) and Airtel (33%). The incentives could stem churn, but tariff hikes risk backlash.
- Investor View: Shares up 1.4% to Rs 6.58; Axis Securities’ Naveen Kulkarni sees ARPU upside.
- Competition: Jio/Airtel lead in 5G; Vi needs 20% subscriber growth for viability.
Conclusion: Vi’s Incentive Gamble for Revival
Vi’s retailer commission hike to 3% is a bold play to recapture share, backed by Rs 9,800 Cr capex. As 5G expands, it could spark a turnaround. For telecom bulls, it’s a value bet—will incentives ignite growth? The signals strengthen. ET
