Vodafone Idea (Vi) Aims for 40% Revenue from 5G within 2.5 Years, Completes Initial 5G Rollout Obligations
Vodafone Idea, known as Vi, plans to make 40% of its income from 5G services within the next two and a half years after launching its advanced mobile broadband. The telecom company, a joint venture between UK’s Vodafone and India’s Aditya Birla Group, has fulfilled its initial obligation for 5G in four regions. Vi aims to leverage the latest 5G technology efficiently due to its delayed entry into the market.
The company disclosed that 90% of its radio equipment is already compatible with 5G. Additionally, Vi is focusing on optimizing its airwaves in the 900 MHz and 2100 MHz bands to expand its 4G coverage in 17 key markets. The goal is to achieve 40% of revenue from 5G within the first 24 to 30 months, targeting the top 100 cities/towns that currently contribute 40% of Vi’s revenues.
Vi has begun deploying an open-RAN network with Mavenir in specific areas and is preparing for the upcoming launch of 5G services. The company’s CEO, Akshaya Moondra, mentioned the intention to roll out 5G within 6 to 7 months after completing pending fundraising. Vi aims to raise ₹45,000 crore through a combination of equity and debt, expecting to conclude the process by the June quarter of FY25. These funds are crucial for Vi’s survival and competition in India’s telecom market.
Vi highlighted its significant 4G airwaves holdings and sufficient spectrum to support the transition of its current 4G user base to 5G services. As of December 2023, Vi had 125.6 million 4G users, with continuous growth for ten consecutive quarters. The company also emphasized its strategic focus on small cell deployments in high-traffic areas of metro/large cities to improve customer experience. Vi estimates that around 42% of its 215 million subscribers could potentially upgrade to the 4G network.
