Winning Bizness Desk
Mumbai.Telecom company Vodafone Idea Limited (VI) saw an 8% surge in its stock price on March 19, following the announcement of its 5G services launch in Mumbai. VI’s stock reached a day high of ₹7.71, before closing at ₹7.46, up by 5.07%. The rise in share value came as the company revealed plans for expanding 5G services and engaging in talks with Elon Musk’s Starlink and Amazon’s Kuiper for satellite communications (Satcom) partnerships in India.
VI's Market Performance and Share Movement
Over the past five days, VI’s share price has risen by 8.65%, while in the last month, it has gained 7.71%. However, on a six-month scale, the company’s shares have fallen by 26.20%, and over the past year, they have declined by 40.39%. Vodafone Idea’s current market capitalization stands at ₹54,550 crore.
Unlimited 5G Plans Starting at ₹299
Vodafone Idea has introduced unlimited 5G services starting at ₹299. The company is strengthening its network to cater to growing demand for high-bandwidth services such as video streaming, online gaming, and cloud access. VI stated in an exchange filing that this 5G rollout would provide wider network coverage and improved mobile experience at affordable prices.
Nokia Partnership for Mumbai 5G Rollout
For its Mumbai 5G expansion, VI has partnered with Nokia, marking a crucial step towards nationwide 5G deployment. The rollout will follow a phased expansion plan. While competitors like Reliance Jio and Bharti Airtel have already completed their 5G deployment across India, VI is in the initial stages of its rollout.
Expansion Plans Beyond Mumbai
Following Mumbai’s launch, VI plans to roll out 5G services in Delhi, Bengaluru, Chandigarh, Patna, and Mysuru by April. In the next phase, it aims to expand into Maharashtra, Gujarat, Kerala, and Chennai. VI is strategically planning to improve its service availability to retain and attract new users.
Subscriber Loss and Financial Challenges
Despite the 5G rollout, VI faces challenges in stabilizing its subscriber base. In December 2024, VI lost 1.7 million users, bringing its total subscriber count down to 207 million. This followed a 1.5 million user decline in November.
Over the last 12 months, VI has raised ₹26,000 crore, including India’s largest follow-on public offering (FPO) worth ₹18,000 crore, and over ₹4,000 crore in promoter contributions. Over the next three years, VI plans a capital expenditure of ₹50,000-₹55,000 crore.
In Q3 FY2024-25, Vodafone Idea reported a consolidated net loss of ₹6,609 crore, marking a 5.40% reduction from the ₹6,986 crore loss in the same quarter the previous year. The company’s operational revenue grew 4.16% year-on-year to ₹11,117 crore. Additionally, its average revenue per user (ARPU) increased by 4.7% to ₹173, up from ₹166 in the previous quarter, driven by tariff hikes and premium plan adoption.
Vodafone Idea’s 5G and Market Developments
- December 2024: VI loses 1.7 million users, bringing total subscribers to 207 million.
- March 19, 2025: VI launches 5G services in Mumbai; shares surge by 8%.
- April 2025: Planned 5G rollout in Delhi, Bengaluru, Chandigarh, Patna, and Mysuru.
- Next Three Years: VI plans capital expenditure of ₹50,000-₹55,000 crore.
- Q3 FY2024-25: VI reports ₹6,609 crore net loss; revenue grows 4.16%.
- Ongoing: Talks with Starlink and Kuiper for Satcom partnership in India.
