Vodafone-Idea (Vi)'s 5G service is getting significant updates and it was recently reported that the updated service will be coming soon for Indian users. The CEO of the company, Akshay Mundra provided key insights into the reasons behind the delay in launching the 5G service and shared details about the company’s network deployment plans.
Furthermore, Vi will also release its financial results for the first quarter of the fiscal year 2024-25, which shows some improvements despite a decline in active users (most probably due to a rise in the tariff as well as a lack of 5G service in the Indian market).
Financial performance: Losses reduced, but active users decline
In the first quarter of the fiscal year 2024-25, Vi managed to reduce its losses. However, the number of active users declined from 19.33 crores to 18.83 crores. The recent increase in mobile tariffs further has impacted the telecom company, leading to a significant number of users porting their numbers to the government-owned telecom company, BSNL.
Besides this, the company remained optimistic that the users would return to Vi in the future.
Tariff Hike and its impact- Users port to BSNL
The hike in mobile tariffs recently, by private telecom service providers (Vi, Airtel and Jio), has benefited BSNL, adding lakhs of new users in India. Furthermore, around 2.5 lakh users were previously customers of private telecom companies. Vi’s CEO further acknowledged this shift but expressed confidence that the company could win back some of these customers.
Update on Vi’s 5G service: Progress and plans
A significant update on Vodafone-Idea's 5G service was shared by Akshay Mundra where he revealed that the telecom player has finalized long-term contracts for 4G network expansion and the commercial deployment of 5G.
Vi is currently in discussions with Ericsson and Nokia to roll out its 5G service. Once these discussions are finalized, the company plans to launch 5G in select areas of the country.
4G network expansion and vendor discussions
The 5G rollout will further focus on expanding its 4G network in the country. Vi has held extensive discussions with vendors to secure long-term contracts, particularly in telecom circles where Chinese vendors Huawei and ZTE have supplied equipment. This is a critical step, especially in regions where the use of Chinese equipment has delayed the 5G rollout.
What is the reason for the delay?
Vi’s CEO cited the use of Chinese equipment in many telecom circles as a primary reason for the delay in launching 5G services. The regulatory restrictions on using such equipment have created challenges, but the company is working to finalize long-term contracts that will allow them to proceed. These discussions are expected to conclude by next month, paving the way for the 5G rollout.
3G network phase-out and 4G site expansion
As part of its preparations for 5G, Vi has been phasing out its 3G networks across the country to free up spectrum for 5G services.
It was on June 30, 2024, when the company said to have more than 4.17 lakh broadband sites. In the recent weeks, more than 6,600 new 4G sites have been added. Additionally, Vodafone-Idea is working to enhance indoor coverage in 14 telecom circles, further improving the network experience for its users.
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