Vodafone Idea (Vi) and Bharat Sanchar Nigam Limited (BSNL) frequently make headlines as they continue to lose customers to Reliance Jio and Bharti Airtel. To counter this trend, Vi needs to increase its capital expenditure, expand its 4G network, and launch 5G services as soon as possible. BSNL, meanwhile, is still in the process of launching its 4G network. The government has mandated that BSNL use only homegrown technology for its 4G and 5G rollouts, which has delayed the process due to a lack of proven technology.
Vodafone Idea 5G Rollout
Vi has initiated its 5G rollout in four circles, primarily to meet minimum rollout obligations, although it has yet to fully meet these requirements. According to CEO Akshaya Moondra, a more extensive 5G rollout is expected in at least six months, as stated during the Q4 FY24 earnings call.
A key issue for most telecom operators, including Vi, is the monetization of 5G services. As a result, Vi is not rushing its 5G launch. However, the lack of a 5G offering is a disadvantage, as high-paying customers may switch to Jio or Airtel, which provide unlimited 5G to their premium users.
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BSNL 4G Rollout
BSNL has been losing customers due to its lack of nationwide 4G coverage. The state-run telecom operator plans to launch 4G at 100,000 sites within the next 18 months, aiming for completion by 2026. Even then, this will represent a relatively small portion of the total mobile sites needed for comprehensive nationwide coverage.
Despite the delays, BSNL’s efforts to establish homegrown 4G will pave the way for its 5G services. Vi’s situation could improve if it reduces its dues by offering more equity to the government and obtaining relief from the Supreme Court of India regarding the alleged miscalculation of adjusted gross revenue (AGR) dues.
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