Is the telecom war intensifying? Vi is reportedly gearing up for 5G deployment, plans to be 15% cheaper than Jio and Airtel

Vodafone Idea (Vi) is gearing up to launch its 5G mobile broadband services in March this year, launching competitively priced plans to challenge rivals Reliance Jio and Bharti Airtel, according to a report.economic times.

The telecom giant’s 5G plans are expected to be about 15% cheaper than those offered by its rivals, which already have extensive nationwide 5G networks.

The move reportedly has strong financial support from Vi $Rs 24,000 crore in equity financing and plans to raise additional funds $Debt of 250 billion rupees. The fundraising has been bolstered by the government’s decision to waive bank guarantee requirements, giving the company a much-needed boost to support its network expansion.

our plan

Vi reportedly plans to launch 5G services in 75 major cities within its 17 priority telecom circles, targeting industrial hubs known for high data consumption. The company is also exploring ways to optimize distribution costs and increase dealer commissions to attract high-value customers.

A senior telecommunications industry analyst saideconomic times”, “Vi may increase payments on reseller commissions and promotional spending to attract high-value 5G prepaid subscribers from larger rivals. “

Vi’s focus on distribution costs is consistent with its recent financial trends. In the 2023-24 financial year, the company spent $Dealer commission is Rs 3,583 crore, equivalent to 8.4% of its sales. This number is significantly more than Jio $Rs 3,000 crore expenditure (3% of sales) and Airtel $Expenditure of Rs 6,000 crore (4% of sales).

Reliance Jio and Bharti Airtel currently dominate the 5G market, with 148 million and 105 million subscribers respectively as of September 2023. However, Vi is closing the gap with recent $3.6 billion 5G deals with Nokia, Ericsson and Samsung. equipment.

The telecoms provider has ambitious plans to build 75,000 5G sites over the next three years, signaling its intention to cement its position in the increasingly competitive 5G space.