Vi expects to get 40% revenue from 5G in 2 years

Vodafone Idea (Vi) anticipates acquiring 40 per cent of its revenue from the 5G business within 24 to 30 months following the rollout of its next-generation mobile broadband service. The financially strained telecommunications company stated in an investor presentation that it has fulfilled its minimum rollout obligation for 5G deployments in four circles.

During the presentation, the telecom joint venture between the UK’s Vodafone and India’s Aditya Birla Group highlighted that its delayed entry into the country’s next-generation wireless broadband domain would facilitate access to the latest advancements in 5G technology in a cost-effective manner. It was mentioned that 90 per cent of its radio equipment is already compatible with 5G. Another strategic focus is reallocating its airwaves in the 900 MHz and 2100 MHz bands to expand the coverage of the telco’s 4G service in its 17 priority markets.

“In terms of 5G, the objective is to achieve 40 per cent of revenues within the initial 24 to 30 months,” Vi stated in the investor presentation filed on BSE.

This indicates that the telco aims to provide 5G coverage in approximately the top 100 cities/towns, which currently generate 40 per cent of Vi’s revenues, as per a company spokesperson.

Last month, Vi commenced the commercial deployment of an open-RAN network in select areas in collaboration with US-based Mavenir, as it prepares to introduce 5G services in the coming months.

During Vi’s fiscal third-quarter earnings call, Chief Executive Officer, Akshaya Moondra mentioned that the telco intends to roll out 5G services within six to seven months after finalising its pending fundraising. Last month, Vi announced plans to raise Rs 45,000 crore through a combination of equity and debt, an initiative it aims to conclude by the June quarter of FY25. The telco has stated that these funds will be utilised to expand 4G capacity and launch 5G networks, which are crucial for Vi’s survival and its competitiveness in India’s increasingly duopolistic telecom market.

In its presentation, Vi highlighted having the highest amount of 4G airwaves per million subscribers and sufficient spectrum holdings to support the migration of its existing 4G user base to 5G services.

As of the quarter ending December 2023, Vi had 125.6 million 4G users, with its 4G user base witnessing growth for 10 consecutive quarters. The telco also mentioned having adequate holdings of 5G airwaves in the mid-band and mmWave bands.

Among other strategic focus areas, Vi plans to deploy small cells in high-traffic locations of metro and large cities to enhance customer experience. The telco also estimates that nearly 42 per cent of its 215 million subscribers have the potential to upgrade to the 4G network. BW Businessworld