Vodafone Idea Should Keep Focus on 4G Only

4G is going to be the biggest chunk of revenue contributor for the operators from the mobile consumer services. While telcos are working their way toward rolling out 5G networks, their focus would not hinder from 4G at all. It would take more than half a decade to make 5G (with respect to consumer mobile services) a significant play for the telecom operators to earn major revenues. That said, Vodafone Idea (Vi), which has been recognised by Opensignal to deliver the best download and upload speeds in India through its 4G network, needs to work further on 4G. It is because just better download and upload speeds don’t form the basis of a good consumer experience. There are other things such as 4G availability and coverage, along with the network performing well on different verticals such as online gaming and video streaming. These are the areas where Vi is not ahead of Jio and Airtel.

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Talking solely in terms of 4G, Jio and Airtel are way ahead of Vi in the business. The capex spending of Jio and Airtel is more than where Vi is at, and Vi still has many legacy network users. Vi needs more 4G users on its subscriber pool as soon as possible. It will not only help with the average revenue per user (ARPU) goals of the company but would also give something positive for the investors to look at.

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