Prices Need Further Uptick to Generate Reasonable Returns: Vodafone Idea

Prices Need Further Uptick to Generate Reasonable Returns: Vodafone Idea
“Prices need further uptick to generate reasonable returns and support future investments,” Vodafone Idea (Vi) said in its Investor Presentation. Before the recent tariff hike in July 2024, the last such hike occurred in November 2021. Currently, tariffs in India remain lower than those in comparable global markets. Considering inflation, prices need to align with rising costs, Vi emphasised.

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Also Read: Vodafone Idea Prepaid Plan Revisions: Hero Becomes SuperHero With Extended Benefits

Tariff Revision Strategy

Vodafone Idea believes there is significant potential for Average Revenue Per User (ARPU) growth, as usage has increased multi-fold while ARPU has not risen proportionately. “Customers’ ability to pay higher tariffs is already established,” the company said. In line with its tariff revision strategy, Vodafone Idea recently launched ‘Vi SuperHero‘ packs, which offer unlimited data from 12 am to 12 pm, an upgrade from the earlier ‘Vi Hero‘ packs that provided unlimited data from 12 am to 6 am.

Investments Across India

Vi highlighted that its 17 priority circles account for approximately 98 percent of its revenue. The company presented a CAPEX plan of Rs 50,000–Rs 55,000 crore over the next three years. This investment will focus on expanding 4G population coverage in these priority circles, providing 4G services on the sub-GHz 900 MHz band in 16 circles for better coverage and experience, enabling 5G launch and expansion, and increasing overall capacity to meet rising data demand.

FY25 Achievements

Vi spent over Rs 2,000 crore as CAPEX during H1 FY25 to increase 4G data capacity by 14 percent and extend 4G population coverage to an additional 22 million people. For H2 FY25, the company anticipates CAPEX of Rs 8,000 crore.