In a move that is set to redefine its market strategy, Vodafone Idea Ltd. (VI) has laid out an ambitious capex plan totaling roughly ₹45,000 crore, aimed at fortifying its network infrastructure to not only improve existing services but also to usher in a new era of 5G connectivity for its customer base. As per the company’s latest announcement via its CEO Akshaya Moondra, the telecom giant is positioning itself for a significant capital infusion, with plans to initiate a ₹18,000 crore follow-on public offer (FPO) within the forthcoming week. This move is complemented by the strategy to mobilize an additional ₹25,000 crore through debt instruments.
Speaking at a recent press conference, Mr. Moondra articulated VI’s commitment to propelling the telecommunication services it offers. “VI is dedicated to the continuous enhancement of its network to cater to the surging demands for more robust data connectivity and to align its technology with the advent of 5G,” he explained. The CEO further emphasized the company’s goal to have 5G technology available to its consumers, with the objective of covering 40% of existing revenues within a timeframe of 24 to 30 months post the secured funding.
Ensuring focused investment to maximize the network effectiveness in its areas of operation, VI aims to bolster its competitive edge across 17 key service areas, which collectively have accounted for a consistently high percentage of the company’s revenue over the past few years—97.4% during FY 2021, increasing marginally each year to 98.2% by the end of December 2023. The company is not neglecting the remainder of its service areas, promising investments that ensure uninterrupted connectivity for all customers.
According to Mr. Moondra, a tactical approach is being taken with respect to how capital expenditures are allocated. “VI plans to utilize small cells in high-density traffic zones within key cities to substantially improve the network experience for our users,” explained the CEO. This forward-thinking approach suggests a company with an eye on addressing consumer needs proactively, particularly in urban hubs where traffic congestion often equates to network traffic spikes.
Currently leveraging cutting-edge 4G technology designed to be compatible with 5G upgrades, VI is also preparing to implement various progressive 5G technologies. These include the integration of additional Massive MIMO sites to boost capacity, DSR (Dual Simultaneous Reception) technology for more efficient user management, ORAN (Open Radio Access Network) to provide greater network flexibility, along with cloudification of the core network, which promises to deliver superior efficiency and agility.
VI’s forward-thinking does not stop at future tech adoption. The company is also looking to expand its spectrum presence, particularly within the LTE 900 and 2100 MHz bands, across 14 service areas. This endeavor will be supported through dynamic spectrum refarming and the deployment of supplemental TDD (Time Division Duplex) and Massive MIMO sites—an initiative that aligns with VI’s systematic strategy for growth and improved service delivery.
As the technological landscape continually shifts, particularly in the telecommunications sector, VI’s strategic capex is proving to be a well-calculated bid to not only recapture market competitiveness but to position itself as a leader in the provision of next-generation connectivity solutions. With a focus on quality service and the embracement of avant-garde technologies, VI is not just addressing the immediate needs of their user base but is laying the groundwork for an increasingly interconnected future. The forthcoming months will reveal how well these strategic investments pay off and translate into tangible benefits for both VI and its customers, potentially changing the telecom game on a grand scale.
