Vodafone Idea (Vi) has confirmed that it is in "exploratory" talks with various Satcom providers, including Starlink. This comes after the exchanges sought clarification from the telecom operator about the news item captioned "Vodafone Idea in talks with Starlink and other satcom providers: CTO" appearing in Moneycontrol, dated March 19, 2025.
Also Read: Vodafone Idea Officially Announces Launch of 5G Services in Mumbai
In an exchange filing released on March 19, Vodafone Idea said, "The Company in ordinary course of business keeps on exploring various initiatives and tie-ups with various parties to enhance the quality of service as also for expansion of the telecom services. The Company is in exploratory talks with various Satcom providers including Starlink."
The company also said that the price movement in the scrip of the company on Wednesday can be correlated to the launch of 5G services in Mumbai.
Backdrop
Vi made an exchange filing of its 5G launch press release, titled "Vi Launches 5G Services in Mumbai with Unmatched Value," in the early hours of March 19 at 00:22, followed by media coverage initiated by various outlets later that morning.
In an interaction with Vi's CTO, multiple media houses covered stories on Vi's 5G rollout and Satcom partnerships, including 1. ET Telecom (Vodafone Idea in talks with Starlink, Amazon Kuiper for Satcom partnership amid 5G push), 2. The Hindu Business Line (Confident of demand for 5G: Jagbir Singh, CTO, Vodafone Idea), 3. Moneycontrol (Vodafone Idea prioritising high-return areas for 5G service availability; FWA trials on: CTO Jagbir Singh), 4. Financial Express (Vodafone Idea launches 5G, entry-level plan around 20 percent discount to peers), and 5. Business Standard (Vi to launch 5G in Mumbai today, to expand by April-end: CTO Jagbir Singh). Additionally, on March 17, Vi's CTO, in an interview with tele.net, discussed 4G, 5G, key trends, and Vi's future plans.
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Commenting on the recent partnerships of Bharti Airtel and Reliance Jio with Starlink, Vi's chief technology officer Jagbir Singh told ET: "We are in conversations with partners and will share an update at an appropriate time."
He added that although satcom will enable connectivity in remote areas, "there are still open questions, like the cost of the devices, regulatory approvals on using satellites for terrestrial connectivity, etc."
Also Read: Vodafone Idea CTO Claims AI-Driven 5G Gives Edge Over Rivals, Plans SA Trials by Mid-2025: Report
Vi's 5G Network Plans
On Vi's 5G plans, Singh reportedly said that Vodafone Idea is not looking to match the network expansion intensity of Reliance Jio and Bharti Airtel. Instead, Vi is focused on strengthening deployments in focus cities to help arrest subscriber churn.
Tariffs
To compete with Airtel and Jio, Vi is offering Unlimited 5G plans starting at Rs 299, lower than Airtel's entry-level plan of Rs 379 versus Jio's offer priced at Rs 349. Vi's offering is at a discount of 14 percent to Jio and 21 percent to Bharti Airtel, according to an FE report.
Capex Plan and Bank Funding
Singh reportedly added that Vi expects to cover relevant areas pan-India over three years, backed by a Rs 50,000-55,000 crore capex plan, and the delayed bank funding won't create hurdles for deploying capex and signing purchase orders to vendors.
Vi 5G Launch Cities
"Following the launch in Mumbai, we will expand our 5G services to Delhi, Bengaluru, Chandigarh, Patna and Mysore by April. Maharashtra, Gujarat, Kerala and Chennai will be included in the next phase of our rollout," the first report quoted the CTO as saying.
5G Handset Users
Singh noted that close to 30-35 percent of Vi users in big cities are 5G handset users. "While it is premature to provide precise projections (on 5G user onboarding), we anticipate a robust uptake, particularly in urban markets and among data-intensive users," Singh reportedly said.
The telco reportedly plans to deploy 75,000 5G sites in 17 priority circles over three years. It has upgraded 10,000 towers to 900 MHz spectrum and deployed 11,000 new towers in the last nine months.
Out of Rs 50,000 crore – Rs 55,000 crore capex planned for the next three years, Vi has earmarked nearly half for 5G rollouts and the other half for 4G coverage and capacity expansion. He added that since the 5G rollout is concurrent with 4G capacity addition at many locations, there are capex synergies for Vi.
According to Singh, Vi's network will support 5G at scale because of substantial investments in core network upgrades. "As we are deploying 5G Non-Standalone (NSA) architecture, the transition between 5G and 4G networks will be seamless."
Also Read: Monetising 4G and 5G: Key Takeaways to Date and What’s Next?
Monetising 5G
However, Singh acknowledged that monetising 5G services separately has been a challenge globally due to significant infrastructure costs, price-sensitive consumers, and a current lack of compelling use cases.
"Most data consumption is for video and gaming. We do think that in enterprise segments as well there will be more acceptability of the 5G based services. With time we expect that the full potential of 5G can be exercised and the monetisable use-cases can be found," the report quoted Singh as saying.
"...However, sectors such as telemedicine, IoT-enabled smart city initiatives, and AR/VR applications in gaming and education present substantial growth opportunities," Singh was quoted as saying in the fourth report.
According to the third report, he reportedly said 5G monetisation remains a challenge for the industry, but the telco will be ready to support it. The company is in discussions with enterprises and remains open to enterprise and consumer use cases, such as private networks and IoT.
Fixed Wireless Access
He reportedly stated that the telco is conducting trials for fixed wireless access (FWA) services, which are the only initial 5G monetisation opportunity for telecom operators in India and worldwide. Both Jio and Airtel have intensified their focus on FWA, as it generates significantly higher average revenue per user (ARPU) compared to mobility and fixed-line broadband services.
"They launched (5G) 2-3 years back, so they are doing FWA. Now, we are doing the testing, and we will be ready at the same time. Parallelly, we are also seeing the business case for FWA," Singh reportedly said.
He further said that since Vi isn't very big in the fixed-line business – like Jio and Airtel are – and also doesn't have plans to grow in that space, its strategy will be more of a mobile, and FWA "wherever there is an opportunity to do it."
Also Read: Vodafone Idea 5G: An Overview of Key Vi 5G Announcements as of January 2025
Advantage of Being Late to 5G
Singh explained that Vi's delayed entry into 5G has provided an advantage by allowing access to superior-quality equipment that is cost-effective, energy-efficient, and integrated with smart AI-based network management systems.
"5G technology and network management systems have evolved over a period of the past two years. We have the advantage of having the latest and advanced network management systems. By adopting leaner technologies, processes will be streamlined, helping to reduce waste and enhance operational efficiency."
"Even as the telco is struggling to breathe, it is not missing out on innovation. The telco has constituted a taskforce on AI which has identified efficiencies in network and corporate functions," he said, according to the report.
Vi's 5G Rollout and Partnerships
As per the second report, Vi is confident about its 5G rollout starting on Wednesday, even though it is making a late entry into the 5G segment. The CTO is confident about the demand for 5G, according to the report. He shared Vi's plans for private 5G network, satellite communication services (satcom) and his views on the Open Radio Access Network (O-RAN).
Vodafone Idea is taking a strategic, data-driven approach to its 5G deployment, prioritising areas where it can maximise returns, Jagbir Singh told Moneycontrol. With the 4G expansion and now the 5G launch, Vi expects customer churn to reduce and stop over time.
According to the third report, the company is swapping 4G and 5G equipment deployed by Huawei and ZTE with Samsung in key circles, including Delhi. He reportedly said the telco’s core network is entirely free of Chinese equipment, and 4G equipment from Chinese vendors will be deployed in rural areas.
Also Read: Vodafone Idea Goes Live With Dedicated 5G Page and Unlimited 5G Plans in Mumbai
Vodafone Idea 5G Gear Vendors
According to the report, Vi plans to launch 5G in Delhi, Bengaluru, Chandigarh, Patna, and possibly Chennai. Mumbai uses Nokia equipment, Delhi is with Ericsson, and Bengaluru and Patna are with Samsung. He referred to the delays, explaining that the company needs to swap out 4,000 Huawei 4G sites in Delhi using Samsung equipment for 5G launch.
"The core network is already free of Chinese vendors, while the transport network has a Chinese presence but will be phased out once the equipment gets old," he reportedly said.
"The Punjab and Bihar circles have been included in the initial rollout due to the presence of legacy Chinese equipment, which is being replaced with virtual radio access network (RAN) gear from new partner Samsung," he told Business Standard.
Following this plan, Vi reportedly plans to launch in Maharashtra, Gujarat, Kerala, and Chennai next. With a three-year plan, the company aims to cover at least 100 cities with a budget supporting 75,000 sites.
Customer Churn
Regarding the impact of customer churn in reference to the 5G launch and 4G expansion, Singh, reportedly said, "If customers receive reliable 4G coverage and high-quality 5G service, there is no reason for them to switch providers. We have already observed positive trends in customer retention after expanding 4G coverage."
Prioritising Deployment
Speaking about how the company prioritises cities for deployment, Singh reportedly said that the company's analytics intelligence-based approach ensures deployment where customers need service most.
"For 5G deployment, we analyse several factors, such as the number of devices in a given area, traffic patterns and application usage, and customer movement patterns, such as daily commutes, high-density residential areas, enterprise hubs, commercial zones, and major transit routes. This data-driven approach ensures optimal coverage and performance. Our network is continuously monitored to enhance customer experience."
He highlighted that Vi's rollout prioritises existing customers first, expanding in targeted pockets rather than just in a single, concentrated area.
Also Read: Airtel, Jio, and Vodafone Idea: Data Usage Trends and ARPU in Q3FY25
Performance with Samsung
According to the report, the CTO said Vi wanted vendor diversity and to test virtualised RAN (vRAN) technology. The company is replacing Huawei's 4G with Samsung's 4G and 5G in regions like Punjab, Karnataka, and Bihar. Key performance indicators (KPIs) with Samsung are at par with those of Ericsson and Nokia.
In Mumbai, around 30-34 percent of Vi's customer base has 5G-ready devices, a number that continues to grow daily.
Satcom Partnerships
Responding to a question about Satcom partnerships, Singh reportedly said, "We are in discussion with not only Starlink but with two or three players. We will see where it goes, depending on our strategy and which service it complements.
"One is certainly for the uncovered areas, where satellite makes perfect sense, whether you want to give fixed or mobile. The second is fixed-line service in rural and smaller towns, where it is expensive to offer it. For some companies, complementing their [terrestrial] services for unconnected or fixed broadband is part of their strategy. However, our strategy doesn't include the fixed line right now. We are discussing to find out the right balance and who could be the right partner."
Deploying GPUs for Enterprise Use Cases
Regarding Vi's plans for deploying GPUs for enterprise use cases in data centers, Singh reportedly said, "We are in the learning phase regarding GPUs and AI. We are assessing how AI can be applied across network operations, IT, planning, design, finance, and HR. At this stage, we are still determining whether to utilise GPUs from hyperscalers or deploy our own."
Also Read: Vodafone Idea 5G Trials in Mumbai: Speeds Reach Up to 243 Mbps
5G Handset Penetration
Speaking about 5G handset penetration Singh told Financial Express, "The 5G handset penetration in our subscriber base is consistently increasing over a period of last few quarters and hence, we anticipate a robust uptake, particularly in urban markets and among data-intensive users.
Further, a reduction in pricing of entry-level 5G phones and device replacement cycle of 2-3 years, would also help Vodafone Idea to see a growth in 5G devices on its network."
Fiber and Backhaul
Speaking with tele.net about the role of fiber in the core, backhaul, and access networks, Singh said, "The transport network has transitioned from traditional network technologies to modern internet protocol/multiprotocol label switching (IP/MPLS)-based architecture to support high bandwidth requirements (600G/800G) for mobility and enterprise services. The growing adoption of edge computing and cloud architecture has further reinforced the role of fibre and transport networks in delivering high-performance, resilient networks."
Vi has over 300,000 km of fibre and plans to deploy over 50,000 km of optical fibre network as part of the network expansion plan. It is increasing its IP/MPLS network penetration to enhance the customer experience across the top 300 cities in the first phase. Additionally, it is doubling its capacity to meet the growing mobility and enterprise bandwidth demands, Singh was quoted as saying in the report.
Open RAN Deployments
Commenting on the outlook for Open RAN deployments, Singh said, "Open radio access networks (RAN) offer a flexible, cost-effective approach to network expansion, promoting vendor diversity and innovation. However, challenges such as standardisation and scaling for large networks remain significant. Addressing these is crucial to unlock Open RAN's potential and its adoption."
"Open RAN has long been recognised for providing vendor diversity and innovation. This holds true at its core as well. However, it has not been able to stand the test of time and provide the large-scale capabilities needed for the Indian network. We have carried out extensive in-depth analyses/pilots, and we find that it is not yet efficient in terms of the total cost of ownership (TCO) for Indian markets," he explained, as per the report.
"If not with 5G, it [Open RAN] will hopefully play a significant role with 6G," he reportedly said.
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Future Strategy
Vi's focus over the next two to three years will be on expanding 4G coverage and capacity, scaling 5G deployments in priority circles and integrating artificial intelligence (AI)-driven automation for network optimisation.
"Strategic partnerships with global technology leaders will continue to shape our modernisation efforts, ensuring a future-ready infrastructure. In addition, upgrading and scaling core and transport networks to support business growth are focus areas," Singh was quoted as saying in the last report.
According to Singh, the integration of 5G and AI promises unparalleled connectivity, enhanced customer experiences, and better operational efficiency, the report said.
