Vodafone Idea Needs Not Just Funding, But Great Execution

The telco showcased a ton of 5G use-cases in a special event in November 2021. Vi has partnered with many startups and major companies/OEMs (original equipment manufacturers) to test and come up with new 5G use-cases. Vi is trying to attract customers with great offers in the prepaid segment.

Highlights

  • While capital is the soul of a business, it would be foolish to think that it is everything a business requires to become successful.
  • Vi is trying to attract customers with great offers in the prepaid segment.
  • But due to losing subscribers every quarter that goes by, Vi has been struggling to make ends meet.

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Vodafone Idea

While capital is the soul of a business, it would be foolish to think that it is everything a business requires to become successful. With capital, companies can fuel their growth, but for that, the right execution and pathway to the future are important. Vodafone Idea (Vi), the only struggling private telecom operator in India, has made it to 2022, carrying a lot of baggage on its shoulders. Things such as adjusted gross revenue (AGR) dues, low average revenue per user (ARPU) users, millions of 2G customers on the subscriber base, and more have stopped the telco from blooming into a successful brand in the country.

However, with the government’s relief measures, the telco now has a chance to rebuild its brand image and turn things around. Vi is not bad; the company just doesn’t have the cash to meet the capex levels of its competitors (Jio and Airtel).

What will remain in the focus of the investors and the people who follow the company will be its execution. Vi is trying to scale its business with a digital vision for India. It makes sense and is the perfect way to communicate its services to the customers.

Vi Might be Betting Huge on 5G

The telco showcased a ton of 5G use-cases in a special event in November 2021. Vi has partnered with many startups and major companies/OEMs (original equipment manufacturers) to test and come up with new 5G use-cases.

Vi is trying to attract customers with great offers in the prepaid segment. Even in the postpaid, the telco has REDX plans which are unlike what any other operator offers to its customers.

But due to losing subscribers every quarter that goes by, Vi has been struggling to make ends meet. The desperate need for fresh capital is evident. The telco would need it for 5G and expanding 4G.

The thing is, before March-end, Vi is expected to raise around Rs 14,500 crore. Out of this, Rs 4,500 crore is expected to come from the current promoters, including the Aditya Birla Group (ABG) and the Vodafone Group Plc. The remaining Rs 10,000 crore might come from external investors.

The telco’s stock is certainly going to be in focus for the next few days. Vi needs a lifeline with fresh capital, and the telco might get it soon. But it would still not be in a very great position. There will still be a ton of debt in the books. However, if the telco can execute its plans properly, the fresh capital infusion from investors would pay off in the long run.

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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.

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