Kumar Mangalam Birla, the Chairperson of the Aditya Birla Group, confirmed in an interview with CNBC-TV18 that Vodafone Idea is planning to launch its 5G services soon. This is a positive development for Vodafone Idea as it has been losing subscribers rapidly in India, and is the only telecom provider in India that has not yet launched 5G services.
Vodafone Idea has collaborated with smartphone manufacturers Motorola and Xiaomi for its upcoming 5G services. The telecom provider currently only offers 4G services in India, while rivals Bharti Airtel and Reliance Jio have already launched 5G services and are gaining subscribers.
However, Birla did not specify a timetable for the 5G rollout. “5G rollout will start soon,” he said at the AIMA Awards, without going into further detail. The announcement comes after Vodafone Idea lost over 42.4 million subscribers since April 2021, including 24.2 million in the 12-month period ending December 2022 alone.
Financial Performance of Vodafone Idea
Vodafone Idea reported a net loss of Rs 7,990 crore for the third quarter of 2022, compared to a loss of Rs 7,595.5 crore for the September quarter. Nonetheless, the company’s overall revenue for the December quarter remained at Rs 10,620.6 crore, up 0.1 percent from Rs 10,614.6 crore in the September quarter.
The Department of Telecommunications (DoT) plans to auction the 5G spectrum in 2022, supporting the Indian government’s push for 5G adoption. The DoT has set a reserve price of Rs 492 crore per MHz of spectrum for the auction, which is expected to generate significant revenue for the government.
Potential Impact of Vodafone Idea’s 5G Launch
Although Vodafone Idea has not yet announced a specific timeline for its 5G launch, the announcement is likely to boost customer confidence and interest in the company. With its collaboration with Motorola and Xiaomi, Vodafone Idea may be able to differentiate its 5G services from those of its rivals and win back some subscribers.
Overall, Vodafone Idea’s upcoming 5G launch is a positive development for the company and the Indian telecom industry as a whole, as it will help drive 5G adoption and competition among telecom providers in the country.
