Vodafone Idea has finally stepped into the 5G space, launching its services in Mumbai. The telecom giant is offering unlimited 5G access to users with plans starting at just ₹299. To meet the rising demand for high-speed internet, the company is also working on enhancing its network infrastructure to support activities like gaming, streaming, and cloud computing.
Stock Market Reaction
On Wednesday, March 19, Vodafone Idea’s stock surged 4% following the announcement of its 5G rollout in Mumbai. The move comes at a crucial time as the company looks to strengthen its position in the highly competitive telecom market.
5G Expansion Plans
Vodafone Idea has teamed up with Nokia to bring 5G connectivity to Mumbai. The company also plans to expand its 5G services across India in a phased manner, ensuring steady growth in its coverage.
Competition in the 5G Space
While Vodafone Idea is making strides in launching 5G, its rivals, Reliance Jio and Bharti Airtel, have already completed their pan-India rollout. This puts additional pressure on Vodafone Idea to catch up and retain its customer base.
Subscriber Base & Financial Standing
Despite its efforts, Vodafone Idea continues to struggle with subscriber losses. According to recent telecom data, the company lost 1.71 million users in December, bringing its total subscriber base down to 207.25 million. This was a sharper decline compared to the 1.5 million subscribers lost in November.
On the financial front, Vodafone Idea has managed to secure equity worth ₹26,000 crore over the past year. This includes India’s largest Follow-on Public Offer (FPO), which raised ₹18,000 crore, along with a ₹4,000 crore promoter contribution. Looking ahead, the company has allocated a capital expenditure (capex) of ₹50,000 crore to ₹55,000 crore over the next three years.
Stock Performance
Currently, Vodafone Idea shares are trading 4.1% higher at ₹7.4. However, the stock remains significantly below its 2024 peak of ₹19 and is also trading under its FPO price of ₹11.
As Vodafone Idea pushes forward with its 5G expansion, investors and subscribers will be closely watching how the company competes with industry leaders and stabilizes its financial position.
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