NEW DELHI, Mar 19: Vodafone Idea on Wednesday launched its 5G services in India, starting from Mumbai with five more cities up next, as the telco bets on the new offering to arrest subscriber churn and place it on a firm footing against larger rivals in the world’s second-largest telecom market.
For now, Vodafone Idea’s 5G services will be offered as an unlimited add-on for plans starting at Rs 299 though the duration of this ‘introductory offer’ has not been specified.
The launch assumes significance as the troubled telco looks to regain ground in the Indian telecom market, where 5G networks were announced in October 2022.
Today, VIL’s larger rivals Reliance Jio and Bharti Airtel dominate the market with a significant 5G base – Jio had 170 million 5G subscribers as of December 2024, and Bharti Airtel’s user count stood at 120 million.
VIL said it is eyeing a 100 cities/town rollout across 17 circles over the next three years and has sufficient capital to forge ahead with its expansion blueprint.
“Following the launch in Mumbai, we will expand our 5G services to Delhi, Bengaluru, Chandigarh, Patna and Mysore by April. Maharashtra, Gujarat, Kerala and Chennai will be included in the next phase of our rollout,” Jagbir Singh, Chief Technology Officer (CTO) of Vodafone Idea, told PTI.
VIL will continue to cover additional cities based on penetration of 5G devices and service demand, he added.
Singh, however, did not divulge the extent of coverage and users it is targeting in the first year of the 5G launch.
It is pertinent to mention here that the number of overall 5G subscribers in India is expected to grow three fold to 970 million, accounting for 74 per cent of the total mobile customer base in the country by 2030, according to a report by telecom gear firm Ericsson.
To strengthen coverage in Mumbai, Vodafone Idea said it has strategically deployed sites in high-traffic zones, residential hubs, and commercial areas to cater to evolving consumer needs.
Singh said while it is premature to provide precise projections, the 5G handset penetration in the company’s subscriber base has consistently increased over a period of the last few quarters.
“…hence, we anticipate a robust uptake, particularly in urban markets and among data-intensive users,” he noted.
With the increasing prevalence of 5G smartphones and the expanded utilisation of high-bandwidth applications, VIL expects that a large part of its user base who possess 5G-compatible devices will transition to the 5G network, depending on the service circle.
While Voda Idea has trailed larger rivals like Jio and Airtel in bringing 5G services to the market, the company sees a silver lining – the benefit of deploying the latest technology and advanced systems.
The 5G technology and network management system have evolved over a period of the last two years, Singh said.
“We have the advantage of having the latest and advanced network management systems, which are designed to manage the downtime in a manner that during network upgrades there will be negligible disruption to users,” he said.
According to VIL, it also has infrastructure in place to consistently monitor network performance and optimise coverage based on real-time demand as the 5G rollout progresses.
“This proactive approach will allow us to adapt to user needs and rapidly enhance network capacity,” it said.
Since the 5G rollout is concurrent with 4G capacity addition at many locations, there are capex synergies for the telco. 4G coverage will continue to be important, especially in rural and semi-urban areas, Singh said, adding that the shift to 5G will depend on how the technology matures and devices become more accessible.
On the introductory offer, Singh said: “We are keen to get existing and potential 5G device consumers to experience our launch offering, and with millions of consumers today on the Rs 299 and above data plans we would want this cohort of consumers to experience our worry-free 5G offering”.
According to Singh, 5G monetisation in India and globally remains a complex challenge due to significant infrastructure costs, price-sensitive consumers, and a lack of compelling use cases.
“However, sectors, such as telemedicine, IoT-enabled smart city initiatives, and AR/VR applications in gaming and education present substantial growth opportunities. Focusing on these innovative areas will enable 5G to create new revenue streams and transform the digital landscape,” he said.
The rollout of 5G, with its “enhanced” network, quality, and differentiated services, will pave the way for monetisation.
VIL had said that Rs 50,000-55,000 crore of capex is planned for over the next three years of which roughly half of the capex is earmarked towards 5G and the rest is for 4G coverage and capacity expansion.
“However, the rollout of the 5G network depends on multiple factors, including adoption of 5G services by customers and monetisation opportunities,” Singh noted.
On 5G helping plug subscriber churn, he said given the continuous enhancement in 4G and now strengthening of VIL network with 5G, the telco’s subscriber “will definitely benefit and this should address the customer churn. (PTI)
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