Vodafone idea announces plans to roll out 5G services in 6-9 months, cover 40% revenue base

Vodafone Idea, India’s third-largest telecommunications company, is set to embark on its 5G journey, aiming to cover 40% of its revenue base with the next-generation technology within the next 24-30 months. 

CEO Akshay Moondra revealed the company’s strategy, stating that the network is 5G ready and plans to commence 5G services in select areas within 6-9 months. The telco intends to utilize the capital raised from its follow-on public offering (FPO) to fund the rollout, expand its 4G network, and defer spectrum payments. With a focused investment plan targeting 17 priority circles, Vodafone Idea aims to drive coverage and capacity expansion to participate in the industry’s growth.

Moondra revealed that the telco has completed its 5G minimum rollout obligation in 5G circles and has conducted extensive testing to ensure readiness for deployment. With plans to commence 5G services in select pockets within the next 6-9 months, Vodafone Idea is poised to enter the next phase of telecommunications technology in India.

To support its 5G rollout and network expansion efforts, Vodafone Idea plans to utilize the capital raised from its recent follow-on public offering (FPO), amounting to Rs 18,000 crore. The funds will be allocated towards setting up new 5G sites, expanding the existing 4G network, and deferring spectrum payments. The telco aims to focus its investment on 17 priority circles across the country to drive coverage and capacity expansion.

Engaging with various 5G telecom gear vendors, Vodafone Idea is gearing up for the order placement, which will depend on securing funding for capital expenditure. The company’s red herring prospectus (RHP) outlines its intention to utilize Rs 12,750 crore from the FPO proceeds to purchase equipment for network infrastructure expansion, including setting up new 4G sites and expanding 5G capabilities.

Specifically, Vodafone Idea plans to allocate Rs 5,720 crore towards setting up its 5G network, with plans to establish 10,000 new 5G sites in FY25 and an additional 12,000 sites in FY26. This strategic investment underscores Vodafone Idea’s commitment to driving innovation and delivering cutting-edge telecommunications services to customers across India.