1 week Ago
Vodafone Idea (Vi) is poised to debut its 5G mobile broadband services this March, introducing competitively priced plans to challenge rivals Reliance Jio and Bharti Airtel, according to a report in The Economic Times . The telecom giant’s 5G plans are expected to be approximately 15 per cent cheaper than those offered by its competitors, which already have expansive nationwide 5G networks. The move reportedly comes with significant financial backing, with Vi securing ₹ 24,000 crore in equity funding and planning to raise an additional ₹ 25,000 crore in debt.
The government’s decision to waive bank guarantee requirements has bolstered this fundraising effort, giving the company a much-needed boost to support its network expansion. Vi's plan Vi reportedly plans to launch its 5G services across 75 major cities within its 17 priority telecom circles, targeting industrial hubs known for high data consumption. The company is also exploring ways to optimise distribution costs and enhance dealer commissions to attract high-value customers.
A senior telecom sector analyst told The Economic Times , “Vi may increase its payouts towards dealer commissions and promotional spends to lure back high-value 5G prepaid users from its bigger rivals.” Vi’s focus on distribution costs aligns with its recent financial trends. During the 2023-24 financial year, the company spent ₹ 3,583 crore—equivalent to 8.
4 per cent of its sales—on dealer commissions. This figure significantly outpaces Jio’s ₹ 3,000 crore spend (three per cent of sales) and Airtel’s ₹ 6,000 crore expenditure (four per cent of sales). Reliance Jio and Bharti Airtel currently dominate the 5G market, boasting 148 million and 105 million users respectively as of September 2023.
Vi, however, is positioning itself to close the gap with its recent $3.6 billion agreements with Nokia, Ericsson, and Samsung for 5G equipment. The telecom provider has ambitious plans to establish 75,000 5G sites over the next three years, signalling its intent to strengthen its foothold in the increasingly competitive 5G landscape.
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