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regular-article-logo Sunday, 19 January 2025

Vodafone Idea plans for 5G migration

The company’s scrips were up 1.78 per cent and 1.52 per cent at the National Stock Exchange and Bombay Stock Exchange, respectively, on Friday after it released a presentation stating that it has 6.8 MHz of 5G spectrum holding per million 4G subscribers

Our Bureau Published 14.12.24, 11:25 AM
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Telecom major Vodafone Idea on Friday said it has “sufficient spectrum” to support the migration of its entire 4G subscriber base to 5G.

The company’s scrips were up 1.78 per cent and 1.52 per cent at the National Stock Exchange and Bombay Stock Exchange, respectively, on Friday after it released a presentation stating that it has 6.8 MHz of 5G spectrum holding per million 4G subscribers.

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The corresponding numbers for peers Airtel and Jio were 8.3 and 6 MHz, respectively, the presentation said.

Vodafone Idea’s total spectrum holding in 700MHz and 3300 MHz bands to offer 5G services is 825 MHz with a 4G subscriber base of 125.9 million.

The telecom major said that a late adaptation of 5G is a boon as the company is embracing latest and advanced technology products with the benefit of cost efficiency.

The presentation was released ahead of its scheduled EGM on January 7 to seek shareholder nod on the issuance of equity shares of 1,980 crore along with appointment of one non-executive director and one independent director.

At the Q1FY25 earnings call, Akshaya Moondra, CEO of Vodafone Idea, had said that the rollout of 5G in key geographies will start in Q4FY25.

Vodafone Idea highlighted four key strategies in its investor presentation to take on Airtel and Jio. These include — focused network investments to drive coverage and capacity expansion, market initiatives to drive ARPU (average revenue per user) improvement and customer retention, focus on business services through telco-to-techco transformation and strategic collaborations to monetise digital opportunities.

The telecom service provider has identified 17 priority circles, including Calcutta and Bengal, for its focussed investments. The company has planned a capex spend of 50,000-55,000 crore over the next three years for the launch of 5G services and expansion of 4G services.

In the first six months of FY25, the company has spent more than 2,000 crore to increase its 4G data capacity and coverage. The expected capital spend in the second half is around 8,000 crore.

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