Vodafone Idea (Vi) has made waves in the telecom industry, experiencing a nearly 5% surge in shares during early trading on March 19, 2025, following the announcement of its highly anticipated 5G services launch in Mumbai. This significant rollout promises to elevate the mobile experience for users through extensive coverage and competitive pricing, as detailed in the company’s official exchange filing.
Launching 5G for Enhanced Connectivity
With a focus on innovation, Vodafone Idea is partnering with Nokia to leverage cutting-edge technology in its 5G infrastructure. The new network is designed to be streamlined and energy-efficient, aligning with sustainability goals. Additionally, Vi has integrated an AI-powered Self-Organizing Network (SON) system, which continuously optimizes network performance to ensure a superior experience for customers.
- Unlimited 5G Data Offer: To entice new customers, Vi is rolling out an introductory plan with unlimited 5G data starting at just ₹299, making it one of the most affordable options in the market. This offering aims to enhance user experiences, particularly in areas like streaming, gaming, video calls, and downloads.
Competitive Landscape
Despite this leap forward, Vodafone Idea still trails behind competitors like Reliance Jio and Bharti Airtel, both of which have already completed their pan-India 5G deployments. The telecom sector remains fiercely competitive, and Vi is working hard to carve out its market share.
Financial Growth and Future Plans
In the past year, Vodafone Idea has successfully raised around ₹26,000 crore in equity, which includes India’s largest follow-on public offering of ₹18,000 crore and a promoter contribution of approximately ₹4,000 crore. This influx of capital is crucial for accelerating their capital expenditure (capex) plans.
- Investment Strategy: Vi aims to invest between ₹50,000 and ₹55,000 crore over the next three years, focusing on expanding its 4G network to reach roughly 90% of the Indian population. The company is prioritizing 5G expansion in key areas to enhance customer satisfaction.
Insights from Leadership
Jagbir Singh, the Chief Technology Officer of Vodafone Idea, expressed enthusiasm about the launch, stating, "Our priority is to introduce 5G meaningfully for our users. We have strategically invested in building a robust 5G network by employing the latest technologies. By expanding our infrastructure, we are preparing for future connectivity demands."
Stock Market Response
Following the announcement of the 5G rollout, shares of Vi rose as much as 4.7% to ₹7.44 during morning trading on Wednesday. However, even after this increase, the stock remains more than 61% below its 52-week high of ₹19.15, recorded in June 2024. Despite gaining nearly 13% from its 52-week low of ₹6.6 in November 2024, the stock has faced an 11% decline in 2025 and has lost 45% of its market value over the past year.
Market Analysts’ Perspective
Brokerage firm Motilal Oswal Financial Services (MOFSL) has expressed skepticism about Vi’s long-term competitiveness. In a note dated March 17, MOFSL indicated that Vi may struggle to gain substantial market share, even with its ambitious capex plans. The brokerage believes that Reliance Jio and Bharti Airtel are better positioned for market capture due to their stronger financials and better free cash flow generation.
- Future Tariff Expectations: MOFSL anticipates another tariff increase in December 2025, projecting a 15% rise. The firm suggests that telecom operators may need to adopt usage-linked pricing models to sustain average revenue per user (ARPU) growth beyond FY27.
In summary, as Vodafone Idea embarks on its 5G journey, the telecom giant faces both opportunities and challenges in a rapidly evolving market landscape.
