Telecom Battle Heats Up: Vi Prepares for 5G Launch with Plans 15% Cheaper Than Jio and Airtel

Vodafone Idea or Vi is reportedly gearing up to fight the next 5G battle, competitively priced as it will compete to take that crown from not only Jio but also from Airtel. According to a report, the operator prepares to launch the 5G mobile broadband in March.

It is starting its 5G services, which will be 15% more economical than other telecom operators. These have already started full-fledged implementation of their 5G network across the country.

Financial Assistance and Expansion Plan

The 5G rollout by Vi comes after the equity funding it raised to the tune of ₹24,000 crore and prepares it for further debt to the tune of ₹25,000 crore. The government decision to waive the bank guarantee condition has hugely helped these fund raisings and has provided much-needed impetus to the network expansion efforts of Vi.

Vi will start its 5G services in 75 prime cities under its 17 priority telecom circles. The thrust would be focused on industrial cities with a higher data usage. The company is also working towards cost reductions of distribution and dealer commission improvement to acquire high-value customers.

Market Strategy

Vi may lose money on dealer commissions and on promotional activities to win back premium 5G prepaid users from bigger competition, a senior telecom analyst was quoted saying by The Economic Times.

This is very well reflected in Vi’s latest financial numbers. For the fiscal year 2023-24, the company paid ₹3,583 crore or 8.4% of its revenue as dealer commissions. It is significantly higher than what Jio has been paying, ₹3,000 crore or 3% of revenue, and Airtel ₹6,000 crore or 4% of revenue.

Competitive Landscape

Now, with the report, Reliance Jio stands with 148 million subscribers, and Bharti Airtel stands at 105 million subscribers and both still stand as the leader up to September 2023, with Vi to close this gap soon through its $3.6 billion deals with Nokia, Ericsson, and Samsung on 5G equipment.

Ambitious plans for it include building 75,000 5G sites in the next three years as a testament to its commitment in getting a better place within the very competitive 5G industry.