Telecom operator Vodafone Idea on Saturday categorically denied and dismissed the speculation that the company may exit six telecom circles where it has seen a dip in its revenue.

A recent Bank of America Merril Lynch (BofA-ML) report said it believed Vodafone Idea Ltd (VIL) would exit the six circles in C-Circle where it has been continuously losing revenue market share with share below 20 per cent. The report has identified Himachal Pradesh, Bihar, Odisha, Jammu and Kashmir, North East and Assam from where VIL may exit.

"There has been reportage in some media that Vodafone Idea may exit six circles  Himachal Pradesh, Bihar, Odisha, Jammu and Kashmir, North East and Assam.  We categorically deny and dismiss this speculation as completely baseless and factually incorrect. Vodafone Idea remains committed and will continue to serve its millions of customers in these circles," Vodafone Idea said in a statement.

The telco has lost revenue share in most circles where the merger of the two mobile networks has been completed, according to a report by JM Financial.

Vodafone India and Idea Cellular started integration of their networks after completing their merger on August 31, 2018. They have repeatedly expressed confidence of improving performance after their merger and integration of their network.

The report said that during the first quarter of the current financial year, Vodafone Idea saw quarter-on-quarter revenue market share erosion in all circles, except Himachal Pradesh.

The highest revenue market share (RMS) loss for VIL was observed in the Metro and A circles, specifically Delhi, Maharashtra, Tamil Nadu, Andhra Pradesh and Mumbai.