Vodafone Idea is ready for a new chapter of growth and innovation and its upcoming investments will concentrate on expanding both 4G services and the rollout of 5G services, ensuring continued improvement in service quality, the company’s chief executive informed customers in a letter.
“We are ready for a new chapter of growth and innovation that is empowered by our state-of-the-art network, advanced technology, and unwavering commitment towards customer satisfaction. Thank you for being an integral part of our story. We are committed to deliver the best to you,” chief executive officer Akshaya Moondra said.
In the letter, Moondra informed Vodafone Idea customers about the telco’s recently concluded Rs 18,000-crore follow-on public offer (FPO).
“We have raised capital through a successful FPO in Apr'24, which has been the largest FPO in the country and was subscribed ~7 times. This success is a testimony to the trust and confidence that our investors have reposed in brand Vi,” he said.
Over the past year, the top executive said, the telco has been making strides in its services with multiple initiatives like optimizing digital assets, and launching new Connected TV and Cloud gaming services - all consolidated under the Vi App. “We have also been ranked highly for voice quality by TRAI and for fast data speeds by independent agencies. We are excited about what comes next.”
In a recent meeting with analysts, Vodafone Idea management said that it views its successful FPO to be an enabler of a turnaround in its fortunes. This equity capital and the proposed debt raise of Rs 250 billion will enable it to upgrade its network and arrest the continuous subscriber loss that it has been seeing for the last 23 quarters.
The telco further informed that 4G-related capex is on track and VIL is working towards getting more area under coverage where the network is highly fluctuating. It is also confident of increasing its ARPU further by continuously upgrading its subscribers from 2G to 4G. It expects to be 5G-ready by the end of FY26 and plans to onboard more customers by upselling premium plans.
Vodafone Idea is currently engaged with all 5G telecom gear vendors but said that order placement will depend on how early it secures funding for capex.
Of the total FPO proceeds, the telco proposes to use Rs 12,750 crore to purchase equipment for expanding its network infrastructure by setting up new 4G sites, expanding the capacity of existing 4G sites, and new 5G sites. It will spend Rs 5,720 crore of the Rs 12,750 crore earmarked for network expansion on setting up its 5G network
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