Vodafone Idea is back in the headlines—and this time, it’s betting big on a 5G catch-up game. The struggling telco plans to launch 5G services across 17 telecom circles by August 2025, even as it pushes hard for tariff hikes and hunts for critical debt funding.
CEO Akshaya Moondra, during the company’s post-Q4 earnings call, confirmed they’re “actively engaged with lenders” to secure funds for rolling out 5G and stabilizing operations. A big move, considering both Reliance Jio and Bharti Airtel have already blanketed India with 5G.
Why It Matters to You
Let’s face it: slow networks and dropped calls are the norm if you’re a Vodafone Idea user. The promise of 5G is tempting—but without stable funding and higher revenues, it risks becoming just that: a promise.
India’s telecom sector has some of the lowest ARPU (Average Revenue Per User) in the world. Vodafone Idea says it’s hurting their ability to grow and invest, and they’re asking for tariff hikes across the board. In simple terms: your mobile bill could go up—because the telcos can’t survive on peanuts anymore.
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Financial Pressure Mounts
The numbers tell the story. Vodafone Idea posted a net loss of ₹7,166.1 crore for the quarter ending March 2025. That’s a bit better than last year’s ₹7,674.6 crore loss, but worse than the previous quarter. Not exactly a turnaround.
Still, there are flickers of hope:
- Revenue rose 3.8% YoY to ₹11,013.5 crore
- ARPU jumped 14.2% YoY to ₹175
This ARPU bump, mostly driven by earlier tariff hikes and better-paying customers, is one reason the company believes there’s still a road ahead.
Raising Cash to Survive
In a stock exchange filing on May 30, Vodafone Idea’s board approved plans to raise up to ₹20,000 crore through public offerings or private placements. Its Capital Raising Committee is expected to finalize how this money will be raised soon.
With 5G now essential—not optional—the company is banking on fresh funds and government support to stay in the game.
Can Vodafone Idea Actually Compete?
Here’s the irony: the tech is ready, but the wallet isn’t. While rivals zoomed ahead with 5G, Vodafone Idea spent most of the race tightening its shoelaces.
Still, if it pulls off this 5G rollout and tariff hike combo, it might just rewrite the narrative. But as of now, it feels like David trying to fight two Goliaths—without a slingshot or Wi-Fi.
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