Vodafone Idea has been scaling its efforts to improve 4G network connectivity and coverage in India. The telco has already committed to putting Rs 80 billion in capex in H2 of FY25. To put this into context for you, Vi spent about one-fourth of this amount in H1, so this means, that we are certainly going to see improvements in the network.
Opensignal already said in its recent report that Vi’s users got the best 4G experience across different segments in the last quarter. However, due to the tariff hikes implemented on July 7, 2024, Vi has been losing customers to BSNL and its competitors. But the trend of its users shifting to BSNL is reversing, and will soon go back to the older levels, said Vi’s CEO.
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Vodafone Idea’s 4G customers aren’t growing at the required pace. The telco has approximately 125 million 4G customers. Compared to this, Bharti Airtel has almost doubled this number while Jio has 4 times this number.
Vi has been making improvements in its 4G networks, but is it enough to sustain the business? For now, it looks like the priority of the Indian consumer is to pay for good 4G. As long as 5G comes as an additional benefit, they don’t mind. So strategy-wise, on paper, it looks like Vi has made the right decision by ramping up efforts for scaling 4G.
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At the same time, the telco will be using the money it raised to roll out 5G across its 17 priority circles. Vi has confirmed that it will launch 5G in all priority circles by the end of this financial year. However, it may not be present in every area of these circles. Further, it will be interesting to see how Vi fares in competition in the FWA (fixed-wireless access) space against the likes of Reliance Jio and Bharti Airtel.
