Vi Prepares to Join the 5G Race With 15% Cheaper Plans:
Vodafone Idea (Vi) is set to launch its 5G mobile broadband services this March, offering affordable plans to compete with Reliance Jio and Bharti Airtel, as reported by The Economic Times.
Vi’s 5G plans are expected to be about 15% cheaper than those of its competitors, who already have wide 5G networks across India.
The company has received ₹24,000 crore in funding and plans to raise another ₹25,000 crore through loans. The government’s decision to waive bank guarantee requirements has helped vodafone idea secure the funds needed for its network expansion.
Future Plans of vi
vodafone idea plans to launch 5G services in 75 major cities across its 17 key telecom circles, focusing on industrial hubs with high data usage. The company is also looking at ways to cut distribution costs and boost dealer commissions to attract premium customers.
A telecom analyst told The Economic Times that vodafone idea might increase dealer payouts and spend more on promotions to win back high-value 5G prepaid users from Jio and Airtel.
In the 2023-24 financial year, vodafone idea spent ₹3,583 crore (8.4% of sales) on dealer commissions, much higher than Jio’s ₹3,000 crore (3% of sales) and Airtel’s ₹6,000 crore (4% of sales).
Currently, Jio and Airtel lead the 5G market with 148 million and 105 million users as of September 2023. vodafone idea is aiming to catch up by signing $3.6 billion deals with Nokia, Ericsson, and Samsung for 5G equipment.
