Vodafone Idea to scrap 3G services by FY22, will focus on 4G for revenues: Report

Vodafone Idea (Vi) plans to shut 3G services by FY22 and become a 4G focused telecom operator. Its 2G services, which consists of the largest subscriber base, will continue.

The focus on 4G is aimed at bolstering revenues, The Economic Times reported.

"The direction which we are taking is that 3G is not required anymore. It has been continued, only because some people have devices which can be used only on 3G and not on 4G … Ideally, we should be done with our 3G closure in FY22," Akshaya Moondra, CFO, Vi said.

The company has 11 million 3G customers.

However, a bulk of its 268 million users – around 149 million, are 2G subscribers and MD Ravinder Takkar sought to reassure that the service “will continue for very long.” He also noted that 2G tech is used for voice and Internet of Things services without raising prices.

The move comes amid similar moves by rivals such as Bharti Airtel to shut 3G services, the report noted.

The plan was discussed during the earnings call on February 15, where senior management also clarified that despite delays, the telco’s plan for fundraising of Rs 25,000 crore will “close soon” and has seen “keen interest by potential investors.”

"We are very well engaged and that there is interest from various participants in helping us with fundraising. The demand for investing in Vi is very positive,” said Takkar.

On rates increase, Takkar said a tariff hike is “much needed” and will be done at the “right time”.