Vodafone India, the country’s second largest operator, saw organic service revenue grow 6.4 per cent in the quarter ended 30 June, as voice revenue returned to growth and regulatory costs fell.

Service revenue for the three months stood at €1.51 billion, parent Vodafone Group said. Vittorio Colao, chief executive, described India as seeing an “ongoing recovery”.

Excluding regulatory impacts, including mobile termination rate cuts, roaming price caps and an increase in service tax, Vodafone India’s service revenue grew 7.7 per cent year-on-year. This was down from 10.2 per cent in the prior quarter, mainly due to lower intra circle roaming revenues.

Data revenue grew 22.3 per cent, but the increase was lower than in prior quarters, due to slower customer growth.

Is active data customer base increased by nearly three million to 69.7 million a year ago. Its 3G/4G customer base grew to 32.3 million, up 46 per cent, and smartphone penetration in its four largest urban areas is now 54 per cent.

Voice revenue returned to growth as competition eased, despite lower average minutes of use per customer, the operator said.

Its total mobile user base increased 1.4 million (postpaid by 650,000; prepaid by 780,000), giving it a customer base of 199.4 million.

Vodafone added 3,300 new 3G sites in the quarter, taking the total in India to 59,000 and its population coverage to 96 per cent of target urban areas. It has 9,700 4G sites.

It said preparations continue for a potential IPO of Vodafone India.