Vodafone-Idea launches 5G services in Mumbai—How plans compare to rivals
What's the story
Vodafone Idea has officially launched its 5G services in Mumbai, marking a major milestone for the telecom giant.
Following the announcement, the company's shares surged 4% on Wednesday.
The exchange filing by Vodafone Idea said this rollout aims to enhance mobile experience with widespread coverage at competitive pricing.
The company has partnered with Nokia for its 5G rollout in the city and plans to expand its footprint across India gradually.
Pricing strategy
Vodafone Idea's 5G plans and competitive pricing
Vodafone Idea is providing unlimited 5G access to its subscribers at prices starting from ₹299. This is a discount of up to 21% to Jio and Bharti Airtel's base plan.
After Mumbai, the telco is planning to launch 5G services in Delhi, Bengaluru, Chandigarh, Patna, and Mysore by April.
In the next phase, the company will look at launching 5G in Maharashtra, Gujarat, Kerala, and Chennai circles.
Notably, Jio and Airtel have already completed their pan-India rollout of 5G services.
Subscriber loss
Subscriber base and financial challenges for Vodafone Idea
Despite launching its 5G services, Vodafone Idea remains challenged with a shrinking subscriber base.
According to Motilal Oswal, stabilizing subscriber losses is key to the company's long-term survival.
In December alone, Vodafone Idea lost another 1.71 million users, bringing its total subscriber count down to 207.25 million - a bigger loss than the previous month's 1.5 million subscribers.
Financial outlook
Vodafone Idea's financial strategy and future plans
Over the last year, Vodafone Idea has raised equity worth ₹26,000 crore. This includes India's largest Follow-on Public Offer (FPO) through which it raised ₹18,000 crore and a promoter contribution of over ₹4,000 crore.
The company has planned a capital expenditure between ₹50,000 crore to ₹55,000 crore over the next three years.
Despite all this and its focus on expanding its 5G network across India, analysts remain cautious about the company's prospects.
Satellite plans
Vodafone Idea explores satellite internet services
Along with its 5G rollout, Vodafone Idea is also eyeing the satellite internet race.
This comes as its bigger rivals—Jio and Bharti Airtel—recently announced partnerships with US-based Starlink Services to launch Elon Musk's satellite internet service in India, pending government approvals.
However, unlike these companies, Vodafone Idea does not have any partnerships in the satellite internet space yet.