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Vodafone Idea is launching 5G services in Mumbai, partnering with Nokia. The company plans Rs. 50,000-55,000 Crore capex over 3 years to expand its 4G and 5G networks.
Vodafone is set to launch its 5G services in Mumbai today.
Vodafone Idea share price: Vodafone Idea’s (Vi’s) shares on Wednesday surged by 4 per cent during the intraday following the announcement of 5G service launch in Mumbai. The scrip was trading at Rs 7.37 per share around 9:30 AM, up 3.80 per cent as compared to the previous day close of Rs 7.10 per share. In the filing, Vi said that it has partnered with Nokia to launch 5G service in Mumbai to ensure users get the best connectivity experience along with energy efficiency.
Vi’s 5G introductory offer provides unlimited 5G data for Vi subscribers on plans starting at Rs. 299.
Vi’s Fund Raise For Boosting 5G Expansion
In the filing, Vi said the telecom has raised equity of Rs. 26,000 Crore, including the largest FPO in India of Rs. 18,000 Crore and promoter contribution of Rs. 4,000 Crore, enabling the company to accelerate its capex deployment. With the planned capex investment of Rs. 50,000 to 55,000 Crore over 3 years, the company is working towards expansion of its 4G network to cover ~90% of Indians, in addition to the launch of 5G services in key geographies, to continuously enhance the customer experience.
Vi’s Outlook By MOFSL
MOFSL in its report on March 17 noted that despite substantial capital expenditure plans by Vi, it is unlikely to achieve competitiveness. “Reliance Jio and Bharti Airtel, possessing stronger financial positions and free cash flow generation, will likely continue to gain market share from Vi. Bharti Airtel and Reliance Industries remain the preferred choices within the telecom sector,” it added.
MOFSL said the benefits of the recent tariff hike are already factored into the valuations of Bharti and Vi. Reliance Jio, with a larger subscriber base on long-duration plans, is expected to experience a delayed benefit. Given the consolidated market structure, increasing data consumption, lower average revenue per user (ARPU), and inadequate returns, another tariff hike, estimated at 15%, is anticipated in December 2025.
“A shift towards usage-linked pricing plans might be necessary for telecom operators to sustain ARPU growth beyond FY27,” it added.