According to the chief executive officer, Vodafone Idea Limited (Vi) will invest an additional Rs 450 billion in capital expenditure over the next three years to speed up network upgrades, achieve 5G parity in key markets, and support a turnaround in performance.
The proposed investment will focus on 17 circles that account for 99.2 per cent of Vi’s revenue, with the aim of achieving full 4G parity with Jio and Airtel within 12 to 24 months. This will be followed by an aggressive 5G rollout, covering all urban areas within 12 to 30 months. The strategy also includes converting remaining 2G sites to 4G in select markets and exploring fixed wireless access (FWA) offerings for home broadband.
The company expects to triple its earnings before interest, taxes, depreciation and amorisation (EBITDA) over the next three years, driven by better subscriber retention, higher average revenue per user (ARPU) as more 5G data users join its network, and operational efficiencies through in-sourced network operations and artificial intelligence led cost controls.
Funding for the investment programme will come from Rs 250 billion in bank debt and Rs 100 billion in non-funded facilities, with the company aiming to maintain a conservative debt-to-EBITDA ratio.
