Vodafone Idea Limited (VIL), the third-largest telco in India, is trying to catch up with the competition - Jio and Airtel. Firstly, it was 4G network experience wherein Vi was trying to catch up and still is doing that. Then, it's the 5G network rollout. So far, since Vodafone Cellular and Idea Limited have merged, the entity is playing the catch up game. This simply means that the competition is way ahead. But the question is, will the market dynamics always stay like this. Predicting future is not right, and so making a statement here to this question won't be right either.
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However, one thing is for sure. When it comes to the networks, debt, subscriber base, assets, in almost every department, Vi is behind Airtel and Jio. So yes, for the time being, it will have to play catch up. What's worrisome is that the telco is not being able to raise funds anymore. In 2024, the telco managed to raise money via equity. Post that, the plans were to raise money through debt. But that hasn't happened.
Vodafone Idea is currently launching 5G in cities where Airtel and Jio already have extensive 5G reach. Jio, in fact, has rolled out 5G VoNR for everyone. This is something even Airtel hasn't done yet. Vodafone Idea, without the help of funds, will not be able to compete with the telcos. The operators have a stiff competition going on, and Vi is not being able to compete head on. There are many areas where Vi has improved, but not enough for the business to make any material gains.
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Vi's stock has fallen more than 50% year-to-date, and with the upcoming AGR (adjusted gross revenue) dues payments, the telco has its hands full. Vodafone Idea is reportedly looking to raise money via debt bonds, but no such confirmation from the company has come yet.
