Vodafone Idea has started expanding its 4G network in the country and expects a 15 percent increase in its data capacity and an increase in 4G population coverage by 16 million by end of September 2024, CEO Akshaya Moondra said on August 12, adding the telco is also in the process of launching 5G services post the recent equity raise.
“Some capex has already been ordered and under execution, basis which we expect ~15% increase in our data capacity and an increase in 4G population coverage by ~16 million by end Sep’24. Our current Capex needs are being met out of equity funds,” Moondra said.
As of June 30, 2024, the telco’s overall broadband site count stood at 417,250, and during the quarter, it added 6,600 4G sites. Capex's spending for the quarter stood at Rs 7.6 billion or Rs 760 crore.
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For the 4G expansion, the telco is working with European telecom equipment vendors – Ericsson and Nokia. In June, the board of Vodafone Idea cleared the issue of preferential shares worth Rs 1,520 crore to Nokia Solutions and Rs 938 crore to Ericsson India. This amounts to Rs 2,458 crore, with the shares being issued at Rs 14.8 per equity share.
The top executive said the telco is engaged with its lenders to secure debt funding for the execution of its network expansion, which has a planned capex of Rs 50,000 crore - Rs 55,000 crore over the next three years.
“The recent tariff intervention is a step in the right direction for the industry to move towards better return on investment, as also to improve cash generation to support the large investment requirements. However, further tariff rationalization is needed for the industry to fully cover its cost of capital,” Moondra said.
After the fundraise, the company said it is working towards high-impact and quickly executable priorities. As a result, it has increased data capacity by ~7 percent to date.
The telco has also expanded Voice over WiFi in its priority circles and at select locations in other circles.
Vodafone Idea has also completely shut down 3G sites in seven circles, with Haryana being added to the list of six other circles: Maharashtra, Gujarat, Andhra Pradesh, Kerala, Mumbai, and Kolkata. “We are in the process of shutting down 3G across other circles as well,” it said.
“We have deployed ~74,750 TDD sites, ~13,950 Massive MIMO sites and ~13,250 small cells till date. Further, we continue to expand our LTE 900 presence in 14 circles at multiple locations, to improve customer experience and with the recent additional 900 MHz spectrum acquisition we will be able to expand our LTE 900 MHz in 16 out of 17 priority circles. Our current 4G network covers over 1 billion Indians (4G coverage is the population reached/covered by VIL with its 4G network),” the telco said in the statement.
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