By the time Vodafone Idea (Vi) launches 5G services, it will have clarity on how to monetise the technology, which is yet to be cracked by other telecom operators, Vodafone Idea CEO Akshaya Moondra has said.
Speaking to analysts on Tuesday, a day after Vi reported a 12.5 per cent lower consolidated net loss of Rs 6,985 crore in the third quarter (October-December) of financial year 2024-25, Moondra said the telecom operator may begin 5G services 7-8 months after securing funding.
“We will at least have the benefit of seeing how the 5G adoption is happening. Significant capital expenditure has been incurred on 5G. But the challenge is that there is no monetisation happening. In fact, the way 5G is priced, it is leading to the discounting of 4G as well,” Moondra said.
The company has been engaging with lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising, to make the required investments for network expansion, including 5G rollout, the CEO said.
Launching 5G in October 2022, Vi’s two main competitors—Reliance Jio and Bharti Airtel—have already launched 5G services in 7,764 and more than 5,000 cities, respectively.
Vodafone Idea (Vi) on Monday reported a net loss of Rs 6,985 crore, down from Rs 7,990 crore in the corresponding quarter of the previous year.
While Moondra did not hint at further tariff hikes, he said the company has reduced the validity of the entry-level Rs 99 plan to 15 days, down from 30 days. “This has now been extended to 16 circles. It may be implemented in the other six circles, going forward,” he said.
The company has seen data usage go down in the latest quarter. Moondra also said the company has stopped 3G services in 5 quarters.
In the latest quarter, a gain of Rs 755 crore arising from a Telecom Disputes Settlement and Appellate Tribunal ruling helped the company’s earnings. However, the telco’s finance cost continued to increase, reaching Rs 6,493 crore, up from Rs 6,284 crore in the same quarter of the previous year.
First Published: Jan 30 2024 | 6:44 PM IST