Vodafone Idea Set for 5G Rollout Post Rs 18,000 Crore FPO

Vodafone Idea (Vi), India’s telecom operator, is stepping on the gas to enter the 5G arena. The company recently announced its plan to launch 5G services in select Indian cities within 6-9 months of finalizing its Rs 18,000 crore Further Public Offer (FPO). This move signifies a crucial step for Vi to compete effectively with rivals Bharti Airtel and Reliance Jio, who already boast established 5G networks in various parts of the country.

FPO Funding Fuels Vi’s 5G Ambitions

Vi CEO Akshaya Moondra emphasized that the capital raised through the FPO will be the backbone of their 5G rollout strategy. The company has allocated Rs 5,720 crore specifically for this purpose. These funds will be directed towards initial testing phases, vendor selection for equipment, and crucial network infrastructure upgrades to accommodate the demands of 5G technology.

Closing the Gap in the 5G Race

Vi’s announcement comes amidst Bharti Airtel and Reliance Jio’s ongoing 5G deployments across major Indian cities. This delayed entry into the 5G landscape puts Vi at a temporary disadvantage. However, the upcoming FPO is expected to be a game-changer, enabling Vi to invest in the necessary infrastructure and close the gap with its competitors.

Targeting High-Revenue Areas for Initial Rollout

Vi’s initial 5G rollout will strategically target areas that generate a significant portion of their revenue. The company aims to cover a substantial 40% of its revenue base with 5G services within the next 24-30 months. While specific details regarding the exact rollout timeline and targeted locations are yet to be revealed, this announcement signifies Vi’s strong commitment to remaining competitive in the rapidly evolving Indian telecom sector. Vi’s strategic use of the FPO funds to expedite their 5G rollout will be closely watched by industry analysts and consumers alike. The success of this strategy will determine Vi’s ability to not only bridge the gap with rivals but also potentially capture a significant share of the 5G market in the coming years.

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