The struggling private telecom operator in India, Vodafone Idea (Vi), has said that it is in the advanced stages of discussion with network gear vendors for the finalisation of the 5G rollout strategy. However, the same is subject to funding. Vodafone Idea, in its latest annual report for FY23, said that it will have a focused approach to investments, and the company will be biased towards the 17 priority circles, which contribute 98% of its revenue and 93% of industry revenue.
Ravinder Takkar, Chairman of Vodafone Idea (Vi), said, "FY23 is the first year where your Company has registered annual revenue growth post-merger despite various challenges being faced, clearly reflecting its ability to effectively operate and compete in this market."
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The company still feels that the tariffs aren't at the level where they should be. Vi has the lowest average revenue per user (ARPU) figure amongst the private telcos in India. In the last quarter of FY23, Vi's ARPU was Rs 135, the same as the previous quarter, with no growth at all. In comparison, Airtel and Jio reported an ARPU of Rs 193 and Rs 178.8.
"Tariffs continue to remain unsustainable and need to increase significantly from current levels to improve overall industry health and generate reasonable returns for operators to promote investments, including investments towards new and emerging technologies," said Takkar.
Vodafone Idea has clusters of 5G networks live in Pune and Delhi for the testing of handsets on its network. Vi has also completed the device testing of the major OEMs (original equipment manufacturers) on its 5G networks. The telco is awaiting to raise funds successfully, without which a wide-scale 5G rollout is not possible.
Vi continues to invest in 4G and has been making strategic decisions to improve revenue margins. Much recently, the telco severed ties with many mult-brand retailers who were not generating any profits for Vi to reduce costs. Also, Vi is looking to upsell through its mobile app by partnering with various brands such as Hungama Music and more.
