One thing which had looked good for Vodafone Idea, despite losses in the last few quarters was high-capex (capital expenditure) spending. This meant that the company is spending on increasing network capacity, reach, and modernising infrastructure. However, in Q2 FY26, the telco's capex fell dramatically. The capex was down by 28% to Rs 1,750 crore. The reason is likely that it hasn't been able to raise more funds from the market. The telco's priority with money raised still lies in improving network capacity and reach. However, for being able to raise fresh funds in the form of debt from the market, a clear resolution in the adjusted gross revenue (AGR) matter needs to arrive.
Read More - ACT Fiber is Offering 50 Mbps Plan with OTT Benefits Under Rs 700
According to JP Morgan, "lower capex can impact network quality/improvements at Vi." What was a positive for Vi during the quarter was rising average revenue per user (ARPU) and lowering loss. Along with that, the company has now reached a 4G population coverage of 84%, which is a huge improvement compared to last year. Additionally, it wants to cover more people and reach a 90% coverage in the coming years.
As for 5G, which will also take a major chunk of its capex in the coming quarters, is now available in 29 cities across 17 priority circles. The telco wants to deepen its coverage in the priority circles first, and then look at other non-priority circles which barely contribute to any revenues for the operator.
Read More - Apple Launches iPhone Pocket for Rs 13,000
The telco's future depends on the AGR dues decision that the government will take. The Supreme Court has already given some relief to Vi in the same matter. Now the ball's in the court of the government, which is the largest stakeholder in the telco.
