Vodafone Idea’s CEO, Akshaya Moondra, recently addressed the challenges surrounding the deployment of 5G, highlighting concerns about its monetization. During an investors’ call following the company’s Q1 FY25 results, Moondra pointed out that while 5G traffic is increasing for competitors, this growth is happening largely because the service is currently offered for free. The real test, he noted, will come when telecom companies begin charging for 5G services, as there is no current metering of traffic due to its free availability.
Moondra explained that one of the key challenges with 5G is that it leads to significantly higher data consumption for the same user behavior, particularly in activities like streaming, without necessarily improving the user experience. “This is acceptable when the data is free,” he said, “but if consumers are charged for data usage and their consumption triples on 5G compared to 4G, they will have to make a decision.”
Vodafone Idea is steadily increasing its network capacity and coverage across India. Following recent fundraising efforts, the company has expanded its network by 15%. Additionally, with the deployment of the L900 band, Vodafone Idea is enhancing indoor coverage in multiple regions. While the company is currently well-positioned with its 4G network capacity, it plans to make further investments, including in 5G.
Moondra acknowledged that direct investment in 5G is a viable strategy and that such investments will be made. However, he stressed the need to consider the availability of 5G devices and the potential requirement to continue expanding 4G capacity based on how much traffic shifts to 5G. He emphasized that while 5G is a clear solution for increasing capacity, the transition will need to be managed dynamically as the market and device availability evolve.
