Vodafone Idea Limited (VIL), the third-largest telecom operator, is offering 5G to users in Mumbai now. The 5G service will naturally expand to more cities and towns in India. The telecom operator has announced that users will get unlimited 5G (capped at 300GB for non-commercial use). The question here is whether Vi's 5G would be a threat to Jio or Airtel. The short answer is no and yes. No because Airtel and Jio have already deployed 5G almost everywhere and aren't even focused on mobile 5G networks. The two telcos are more focused towards the expansion and distribution of the 5G FWA (Fixed Wireless Access) services. Vodafone Idea has also showcased its 5G FWA service and equipment at the IMC (India Mobile Congress) in Delhi for two years in a row.
Jio and Airtel already have customers on their 5G network. At this point, it is very unlikely that users will leave the network of one operator and shift to another just for 5G. Especially Vodafone Idea's 5G won't attract customers of Airtel and Jio because of its limited availability at the moment.
Let's talk about the "yes" that we mentioned above.
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Vi is expanding its 4G networks, not just deploying 5G. The company's major focus still lies in the expansion and upgradation of 4G networks across the country. 5G would serve just as an attractive offering to the high-paying customers in the priority circles of the company. The company is not just offering unlimited 5G, but also unlimited 4G data with its plans.
Read More - Vodafone Idea 5G: Everything to Know
FWA would certainly be an area where Vi can compete with the other two telcos. But that would again be at a smaller scale and in limited towns/cities for now. Vi's 5G rollout speed will be key to capture value from the 5G market. Nokia has said that there will be more than 700 million 5G customers by 2028.
How many of these users can Vi capture will determine the company's growth trajectory in the coming years. 5G users won't just consume more data, but they would also pay more to use that data. Vi's 5G isn't a threat to Airtel and Jio, as of now, but in time, it can give them great competition if Vi can couple it up with a seamless 4G network experience.
