Vodafone Idea (Vi) is preparing to launch its 5G services in March 2025, aiming to compete with leaders like Reliance Jio and Bharti Airtel. The company plans to cover 75 major cities across 17 key regions, focusing on urban and industrial areas with high data demand.
Vi’s 5G plans are expected to be around 15% cheaper than Jio and Airtel, targeting price-conscious customers. This aggressive pricing strategy could spark a price war in the telecom market.
Vi has secured ₹30,000 crore deals with Nokia, Ericsson, and Samsung to enhance its network capabilities. Over the next 3 years, the company aims to install 75,000 5G base stations using a mix of 3.5 GHz and 1,800 MHz spectrum for extensive coverage.
Nokia’s AI-based MantaRay SON (Self-Organising Networks) will manage Vi’s 4G and upcoming 5G networks. This system uses machine learning to optimise over 1 million network cells, improving performance and energy efficiency while reducing manual intervention.
Vi is expanding its infrastructure at a record pace, adding 100 towers per hour. This accelerated rollout follows its successful follow-on public offer (FPO) earlier this year.
With ₹24,000 crore in equity funding and ₹25,000 crore in expected debt, Vi is financially prepared for its 5G rollout. The government’s support, including waiving bank guarantee requirements, further strengthens its position.
Vi plans to utilise its 4G infrastructure to ensure a smooth transition to 5G. The focus will be on providing high-quality connectivity to attract new customers and retain existing ones.
To regain market share, Vi is increasing dealer payouts and marketing budgets. This approach aims to support its 5G launch and improve visibility in the competitive telecom market.
While low-cost plans are central to Vi’s strategy, the company must ensure that average revenue per user (ARPU) continues to grow. Its success will depend on offering affordable plans without compromising service quality or financial stability.
Vodafone Idea’s 5G rollout is a bold step to challenge Jio and Airtel. However, keeping a balance between competitive pricing and profitability will be key to its success.
Vodafone Idea share price opened at ₹8.14, reached a high of ₹8.38 and is currently trading at ₹8.35, up by 2.58% as of 9:37 AM on January 3.
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