Mumbai: Shares of Vodafone Idea (Vi) surged nearly 5 percent in early trade on March 19 after the telecom company announced the launch of its 5G services in Mumbai. The company aims to enhance user experience with improved network coverage and competitive pricing.
In an exchange filing, Vodafone Idea stated that its 5G network will utilize next-generation equipment in partnership with Nokia. The rollout focuses on a leaner, energy-efficient infrastructure to ensure sustainability. Additionally, the company has integrated an AI-powered Self-Organizing Network (SON) to optimize network performance and enhance consumer experience.
Competitive Pricing and Consumer Benefits
To attract users, Vodafone Idea introduced an introductory offer featuring unlimited 5G data for plans starting at Rs 299. This pricing makes Vi’s offering one of the most affordable 5G plans available. The service is designed to enhance streaming, gaming, video calls, and downloads for its subscribers.
However, despite this launch, Vodafone Idea still trails behind competitors like Reliance Jio and Bharti Airtel, both of which have already completed pan-India 5G deployment.
Financial Strength and Expansion Plans
Over the past 12 months, Vodafone Idea has raised approximately Rs 26,000 crore in equity. This includes India’s largest follow-on public offering (FPO) worth Rs 18,000 crore and a promoter contribution of about Rs 4,000 crore. This fresh capital is expected to accelerate Vi’s capital expenditure plans.
The company has committed Rs 50,000-55,000 crore in investments over the next three years. The primary focus will be on expanding its 4G coverage to reach nearly 90 percent of the Indian population while rolling out 5G services in key markets.
Jagbir Singh, CTO of Vodafone Idea, commented on the launch: “Our focus is on introducing 5G meaningfully for our users. We have built a robust network with the latest technology, ensuring seamless connectivity and modern digital experiences.”
Stock Market Reaction and Outlook
Following the 5G announcement, Vi shares rallied 4.7 percent to Rs 7.44 during morning trade. Despite this jump, the stock remains significantly below its 52-week high of Rs 19.15, recorded in June 2024. It has, however, recovered approximately 13 percent from its 52-week low of Rs 6.6, touched in November 2024.
Since the beginning of 2025, Vodafone Idea shares have declined by 11 percent. Over the past year, the stock has lost nearly 45 percent of its market value. While the 5G launch provides optimism, Vi still faces challenges in catching up with industry leaders in terms of nationwide network expansion and financial performance.
