Vodafone Idea (Vi) is set to launch 5G services in March 2025, aiming to compete with market leaders like Reliance Jio and Bharti Airtel. The telecom operator plans to target 75 major cities across 17 priority circles, focusing on high-demand urban and industrial areas, according to a report in the Economic Times.
Vi’s strategy revolves around aggressive pricing, with plans expected to be up to 15% cheaper than Jio and Airtel. This move is designed to attract price-sensitive customers and potentially trigger a price war in the market.
Vi has secured Rs 30,000 crore deals with Nokia, Ericsson, and Samsung to upgrade its network. The company aims to deploy 75,000 5G base stations over three years, using a mix of 3.5 GHz and 1,800 MHz spectrum for broad coverage.
Nokia has deployed its AI-powered MantaRay SON (Self-Organising Networks) solution in Vodafone Idea’s (Vi) 4G and upcoming 5G networks across India. This system will optimise over 1 million network cells, enhancing capacity, performance, and energy efficiency. MantaRay SON uses machine learning algorithms to autonomously improve network operations, reducing human intervention. It also helps lower energy consumption through intelligent traffic management.
The company recently announced that it has reached a major milestone in its network expansion efforts, achieving its goal of adding 100 towers every hour. This is part of the company’s ongoing infrastructure rollout across India, which has accelerated following its successful FPO earlier this year.
With Rs 24,000 crore in equity funding and expected Rs 25,000 crore in debt, Vi is well-equipped to roll out its 5G services. Government support, including waiving bank guarantee requirements, further strengthens its position. Vi plans to leverage its existing 4G infrastructure for a seamless 5G experience. The focus will be on delivering high-quality connectivity to attract and retain customers.
Further, to regain market share, Vi will increase dealer commissions and marketing spending, a strategy already reflected in its higher dealer payouts for FY24. This will support its 5G rollout and boost visibility.
While aggressive pricing is central to Vi’s strategy, the company must balance it with maintaining ARPU growth to ensure financial stability. Success will depend on offering both affordable plans and superior service quality.
Vodafone Idea’s 5G rollout aims to challenge the market dominance of Jio and Airtel, but its success will depend on its ability to offer competitive pricing without compromising profitability.