Vi eyes 40% of revenues from 5G in over two years
In its presentation, the telecom JV between UK's Vodafone and India's Aditya Birla Group, said its delayed entry into the country's next-gen wireless broadband turf would help it access the latest advances in 5G technology in a cost-efficient way. It added that 90% of its radio gear is already 5G-ready. Another strategic focus is refarming its airwaves in the 900 MHz and 2100 MHz bands as part of plans to expand the telco's 4G coverage in its 17 priority markets.
() expects to garner 40% of its from the 5G in 24-to-30 months, post-rollout of its next-gen mobile broadband service. It has completed its minimum obligation towards deployments in four circles, the cash-strapped telco said in an investor presentation.In its presentation, the JV between UK's Vodafone and India's , said its delayed entry into the country's next-gen wireless broadband turf would help it access the latest advances in 5G technology in a cost-efficient way. It added that 90% of its radio gear is already 5G-ready. Another strategic focus is refarming its airwaves in the 900 MHz and 2100 MHz bands as part of plans to expand the telco's 4G in its 17 priority markets.
"For 5G, the target (is) to cover 40% of revenues in the first 24 to 30 months," Vi said in the investor presentation filed on BSE.
This implies the telco will target 5G coverage in roughly the top 100 cities/towns that generate 40% of Vi's current revenues, a company spokeswoman said.
Last month, Vi started commercial deployment of an open-RAN network through US-based Mavenir in select areas even as it readies to launch 5G services in coming months.
At Vi's fiscal third-quarter earnings call, chief executive Akshaya Moondra had said the telco is looking to roll out 5G services in 6-to-7 months after closing its pending fundraise. Last month, Vi had announced plans to raise ₹45,000 crore via a combination of equity and debt, an exercise it expects to conclude by the June quarter, FY25. The telco has said the funds would be used to expand capacity and launch 5G networks. This is vital for Vi's survival and for it to compete with bigger rivals in India's increasingly duopolistic telecoms market.
In its presentation, Vi said it had the highest quantum of 4G airwaves per million subscribers, and had adequate spectrum holdings to support the migration of its current 4G user base to 5G services.
In the quarter ended December 2023, Vi had 125.6 million 4G users. The telco's 4G user base has grown for 10 successive quarters. It added that it has adequate 5G airwaves holdings in the mid-band and mmWave bands.
Among other strategic focus areas, Vi will target small cell deployments in hotspot locations of metro/large cities to enhance customer experience. The telco also estimates nearly 42% of its 215 million subscribers can potentially upgrade to the 4G network.
Source: Stocks-Markets-Economic Times
