Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has made a move to boost its average revenue per user (ARPU). The telco has removed 5G from its base plan - the Rs 299 prepaid plan. This plan is available throughout India. To start with, this change has happened in Mumbai, and will follow for other circles too. Akshaya Moondra, CEO of Vodafone Idea, (until August 18, 2025), mentioned during the earnings call of Q1 FY26, that they are withdrawing the introductory 5G offer from Mumbai. This means that the Rs 299 plan will not offer 5G anymore. The base 5G plan in Mumbai for Vi users now comes at Rs 340. This will allow the telco in boosting ARPU.
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Vodafone Idea users across all telecom circles where 5G is available will see the same move. The telco recently launched 5G in Kochi, Kerala and plans to launch 5G in Thiruvananthapuram also on August 20, 2025. Vi has picked up the deployment pace for 5G. However, it is still quite far from the rollout of Jio and Airtel as the other two telcos started deploying in 2022 itself.
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Vodafone Idea is trying to raise fresh funds from the non-banking options. This is because banks want more clarity on the AGR (adjusted gross revenue) dues front. Till the time government doesn't convey anything to Vi, it won't happen. The banks are worried about exposing themselves any further to Vi. While Vi has managed to reudce bank debt quickly over the years, the AGR dues which will be payable by the end of this fiscal year, will be a huge task for the company. The banks just want to ensure that Vi has a plan to pay off the dues and carry on with the business.
