Vodafone Idea (Vi) is gearing up to launch its 5G mobile broadband services in March, aiming to offer competitively priced plans to take on industry giants Reliance Jio and Bharti Airtel, according to a report in *The Economic Times*. Vi’s 5G plans are expected to be around 15% cheaper than its rivals, who already have extensive 5G networks across India.
The company’s 5G rollout is supported by substantial financial backing, including ₹24,000 crore in equity funding and plans to raise an additional ₹25,000 crore through debt. The government’s recent move to waive bank guarantee requirements has further eased Vi’s fundraising process, giving it the financial leverage to compete in the rapidly expanding 5G market.
Vi’s initial 5G service launch will target 75 major cities across its 17 priority telecom circles, focusing on industrial hubs with high data consumption. The company is also exploring ways to optimize distribution costs and increase dealer commissions in an effort to attract high-value customers.
According to a senior telecom analyst, Vi may increase its payouts to dealer commissions and promotional spending to capture 5G prepaid users from its larger competitors. In the 2023-24 financial year, Vi spent ₹3,583 crore—8.4% of its sales—on dealer commissions, a significantly higher amount than Jio’s ₹3,000 crore (3% of sales) and Airtel’s ₹6,000 crore (4% of sales).
As of September 2023, Reliance Jio and Bharti Airtel lead the 5G market, with 148 million and 105 million users, respectively. However, Vi is committed to closing the gap with strategic agreements worth $3.6 billion with Nokia, Ericsson, and Samsung for 5G equipment. The company plans to deploy 75,000 5G sites over the next three years, strengthening its position in the competitive 5G landscape and offering affordable alternatives to the current market leaders.
