In March, Vodafone Idea officially launched its 5G services in Mumbai, over two years after Bharti Airtel and Reliance Jio. Here’s how the telecom operator is making the most of a late arrival in the 5G market.
Cost Efficiency
Vodafone Idea recently presented in a report that its late entry into the 5G market enabled it to deploy the latest network innovations, like Disaggregated Radio Access Network (RAN). This setup increases cost efficiency, adds new service capabilities, and enhances operational flexibility. The company plans to expand operations to Delhi, Bengaluru, Chandigarh, Patna, and Mysuru by the end of April.
Average Revenue Per User
In Q3 FY25, Vi’s blended ARPU rose to Rs 173 from Rs 166 in the previous quarter. Vodafone Idea has emphasized the need for tariff correction, noting that average revenue per user (ARPU) has not kept pace with the surge in data consumption. The company sees significant potential for ARPU growth, citing consumers’ established willingness to pay higher tariffs. Notably, tariffs in India are much lower than in other comparable global markets.
To drive ARPU growth, Vi is focused on expanding its 4G network, upgrading its existing 2G subscribers, and growing its base of high-ARPU customers by enhancing service quality. It also plans to improve broadband device penetration through financing programs, in partnership with NBFCs.
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Increased Government Stake
In March, the debt-laden company saw a major move where the government approved the conversion of Vi’s outstanding spectrum auction dues into equity worth Rs 36,950 crore, raising the stake in the company to 48.99 percent from earlier 22.6 percent.
Key Highlights
Vodafone Idea ranks among the top ten cellular operators globally based on subscriber count within a single country and holds its position as the third-largest operator in India.
Expansion Plans
The company has also laid out a capital expenditure plan of about Rs 50,000–55,000 crore over the next three years to expand 4G coverage across 17 priority telecom circles. Additionally, the company plans to deploy 4G services on the sub-GHz 900 MHz band in 16 circles, which will provide improved coverage and a better experience.
On the 5G front, the funds will be used to support the launch and expansion of services in key cities and geographies. The capex will also go towards increasing network capacity to meet the growing demand for data, ensuring a smoother experience for customers.
Written by Shwetha Sairam
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