Mumbai: Vodafone Idea (Vi) is exploring potential satellite communication (satcom) partnerships with major global players, including Elon Musk’s Starlink and Amazon’s Project Kuiper. These discussions align with Vi’s broader strategy to enhance network capabilities and support its ongoing 5G rollout. The move comes as telecom rivals Reliance Jio and Bharti Airtel have already established their satcom alliances, making it imperative for Vi to secure strategic tie-ups to remain competitive.
Jagbir Singh, Vi’s Chief Technology Officer, acknowledged the importance of satellite connectivity in improving network reach, especially in remote areas. He stated that the company is in discussions with key industry stakeholders and will announce further developments in due course.
5G Expansion with a Targeted Approach
Unlike Jio and Airtel, which have aggressively expanded 5G across the country, Vi is focusing on select urban centers to optimize resources and curb subscriber churn. With a phased rollout plan, Vi is prioritizing metro cities before expanding further.
Despite facing financial constraints, Vi has allocated Rs 50,000-55,000 crore over the next three years to strengthen its network. Following its initial Mumbai 5G launch, the company plans to extend services to Delhi, Bengaluru, Chandigarh, Patna, and Mysore by April, followed by expansions into Maharashtra, Gujarat, Kerala, and Chennai.
Vi’s relatively smaller 4G footprint has contributed to subscriber losses, but the company is attempting to regain traction through competitive pricing. It has introduced a 5G plan starting at Rs 299, undercutting Airtel’s Rs 379 and Jio’s Rs 349 plans.
Strengthening Infrastructure for Future Growth
Vi has outlined plans to deploy 75,000 5G sites across 17 key regions within three years. The company has modernized 10,000 towers with 900 MHz spectrum and added 11,000 new towers over the past nine months. Singh emphasized that integrating 5G with ongoing 4G expansion has resulted in cost efficiencies, ensuring optimal use of capital.
Operating on a Non-Standalone (NSA) 5G architecture, Vi has upgraded its core network to facilitate smooth transitions between 4G and 5G services. The company aims to leverage AI-based network management systems to further optimize operations and enhance customer experience.
Monetisation and Technological Innovations
The telecom industry has struggled to generate standalone revenue from 5G, primarily due to high infrastructure costs and limited use cases. Vi is exploring Fixed Wireless Access (FWA) services as a potential revenue stream, with trials already underway. Competitors Jio and Airtel have made significant FWA investments, capitalizing on its higher average revenue per user (ARPU) potential.
Vi’s strategy revolves around leveraging mobile services and FWA rather than expanding into fixed-line broadband, where it has a weaker presence. Singh highlighted that ongoing technological advancements allow Vi to deploy energy-efficient network infrastructure integrated with AI-driven optimizations, reducing operational inefficiencies and costs.
Despite financial challenges, Vi remains committed to innovation and strategic partnerships, aiming to carve a niche in India’s evolving telecom landscape.
