Vi Prepares for 5G Launch with Plans 15% Cheaper Than Jio and Airtel

Vodafone Idea (Vi) is preparing to launch its 5G mobile broadband services this March, offering competitively priced plans aimed at rivaling Reliance Jio and Bharti Airtel, as reported by The Economic Times.

Vi’s 5G plans are expected to be around 15% cheaper than those provided by its competitors, who already have extensive 5G coverage across the country.

The company’s efforts are supported by significant financial backing, including ₹24,000 crore in equity funding and plans to raise an additional ₹25,000 crore through debt. This fundraising push has been bolstered by the government’s decision to waive bank guarantee requirements, providing Vi with essential financial flexibility for its network expansion.

The telecom provider aims to roll out 5G services across 75 major cities within its 17 key telecom circles, prioritizing industrial regions with high data demand. Vi is also exploring ways to streamline distribution costs and enhance dealer incentives to attract high-value customers.

A telecom industry expert mentioned to The Economic Times that Vi might increase dealer commissions and promotional spending to win back premium 5G prepaid users from its larger competitors.

This emphasis on distribution spending is evident in Vi's financial data for 2023–24, during which the company allocated ₹3,583 crore—8.4% of its revenue—toward dealer commissions. This amount surpasses Jio’s ₹3,000 crore spend (3% of revenue) and Airtel’s ₹6,000 crore spend (4% of revenue).

Reliance Jio and Bharti Airtel currently lead the 5G market with 148 million and 105 million users, respectively, as of September 2023. However, Vi aims to narrow this gap by securing $3.6 billion agreements with Nokia, Ericsson, and Samsung for 5G infrastructure.

Vi has ambitious plans to establish 75,000 5G sites over the next three years, demonstrating its commitment to expanding its market share in the highly competitive 5G sector.