Vodafone Idea Could Benefit With Shared Infra Cost in 5G

Vodafone Idea can collaborate and work with the top two operators, Reliance Jio and Bharti Airtel to save their money. Both Jio and Airtel have enough money to sustain and keep investing in their networks.

Published by
Tanay Singh Thakur

5G is going to be the next revolution in the connectivity standards, and it is going to come with its share of challenges. One of the biggest issues that Vodafone Idea (Vi) and other telcos will have to navigate through will be delivering the network seamlessly to the end-user. Since 5G networks would operate on a higher spectrum band, they will require even denser infrastructure and backhaul to support the connectivity. This will involve a lot of costs for the telcos since they will essentially have to spend on both spectrum

and the ground-level infrastructure. But there’s something that the telcos can do, and it is something that will benefit Vodafone Idea a lot.

Vodafone Idea Can Collaborate With Jio and Airtel to Save Money

Vodafone Idea can collaborate and work with the top two operators, Reliance Jio and Bharti Airtel, to save their money. Both Jio and Airtel have enough money to sustain and keep investing in their networks. Yes, with the relief package in place, even Vodafone Idea can do it, but that is only possible to a certain extent.

If Vi can make Jio and Airtel share the infra cost with it, it will benefit everyone. This will also push the telecom connectivity standards a little higher. Vi has a lot of debt, and even with the relief package, it can’t invest a lot in its networks very aggressively.

Sunil Bharti Mittal recently said that he met Nick Read, CEO of Vodafone Group Plc, and talked with him about covering the lost ground. Mittal had further said that he would also talk to Mukesh Ambani, Chairman and Managing Director (MD) of Reliance Industries Limited (RIL), to approach the market with a coordinated strategy.

If this thing happens, it will be a really good thing for the sector in the long run. Sharing infrastructure costs with each other will only result in a win-win situation for everyone. At the end of the day, Vodafone Idea is going to stay. Instead of beating down each other for a bigger market share, the telcos can go with a coordinated approach as Mittal has suggested and come with better results not only for themselves but for the entire industry.

Neil Shah, Vice President, Counterpoint Research said that if there is no fibre in backhaul, 5G will not be successful even with large amounts of the spectrum at disposal. Shah said that if Jio lends its fibre to Vodafone Idea, it will be a win-win situation for both companies.

Tanay Singh Thakur

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Published by
Tanay Singh Thakur

Recent Posts

BSNL 4G Has a Role to Play in India’s Growth

Bharat Sanchar Nigam Limited (BSNL) has a major role to play in the growth of…

TSSC Believes Up-Skilling of Telecom Workers Necessary

The recently announced reforms for the telecom sector will have a huge impact on the…

Strategised OTT Content Creation Can Rule PAN India Audience

By Divya Dixit, SVP - Marketing & Revenue, ALTBalaji Another quiet weekend with my daughter…

5G Has Airtel and Jio Running for Bigger Market Share

When 5G arrives in India, it is all going to be about revenue maximisation for…

Vodafone Idea Offers Better Rs 500 Plan than Jio

Vodafone Idea (Vi) offers some of the best-prepaid plans compared to its rivals Reliance Jio…

WhatsApp Payments Lets You Send Stickers With Your Money

The popular instant messaging platform, WhatsApp introduced the Payments feature in India recently after a…

Spectra, Airtel, BSNL, Excitel Best Broadband Plans for You

The internet service providers in the country are seeing increased traction and have added several…

Mobile Recharges Via PhonePe Will be More Expensive Now

There are a ton of third-party applications and online wallets that allow users to recharge…

Jio and Other Operators Might Increase Price of Select Plans

Reliance Jio and its competitors including Bharti Airtel and Vodafone Idea (Vi) are going to…