Vodafone Idea plans to invest over Rs 50,000 cr to boost 4G, 5G rollout

Vijay C Roy

Chandigarh, July 4

Country’s third-largest telecom operator Vodafone Idea (Vi) plans to invest over Rs 50,000 crore over the next three years to ramp up 4G coverage, enhancing data capacity and 5G rollout. The company has already raised Rs 18,000 crore from follow-on public offer (FPO) and Rs 2,000 crore from promoters.

“We are planning to raise Rs 25,000-30,000 through mix of debt and equity. We are exploring the possibilities and we are hopeful that it would be materialised soon. Since, we have already raised Rs 18,000 crore through FPO and Rs 2,000 crore from promoters, the total investment will be to the tune of over Rs 50,000 crore. The proceeds will be used in strengthening the network capacity and of course 5G rollout,” Abhijit Kishore, Vodafone Idea COO, said in an interaction with The Tribune here.

The funding was part of Vi’s strategy to compete with telecom rivals Reliance Jio and Airtel by enhancing its 4G coverage and 5G rollout. Already, Reliance Jio and Bharti Airtel have deployed pan India 5G networks, but Vi is yet to roll out its 5G network.

“Our goal is to provide customers with the best network experience by investing in the expansion of 4G coverage and enhancing data capacity. Additionally, as customers demand better choices, we have built a digital ecosystem with our partners to offer a differentiated experience. The Vi App serves as a multi-utility platform, offering games, entertainment, cloud gaming, utility bill payments and more.” said Kishore.

The mobile player is also considering rolling out 5G on a large scale over the next six months. Kishore emphasised that while 5G rollout was important, the telecom’s “topmost priority” was to expand and strengthen 4G coverage.

The company shared that it would first focus on adding L 900 and L 2100 spectrum aimed at enhancing indoor network experiences for telecom users.

This deployment of spectrum will improve coverage and connectivity in urban areas with dense building infrastructure, as well as in suburban and rural areas where signal penetration can be difficult. It will enhance voice call quality, support better messaging and improve data browsing (internet) experience indoors.

On being asked about the plans for Punjab and Haryana, he said: “We are going to strengthen our network connectivity and experiences in Punjab and Haryana. We will prioritise these circles in the ongoing network enhancement initiatives after successfully raising Rs 18,000 crore in an FPO.”