During the annual general meeting (AGM), Ravinder Takkar, non-executive chairman, Vodafone Idea Limited (Vi), informed that Vi’s 5G rollout will depend on the factors such as the use cases, demand from customers, capacity requirements and competitive dynamics. Meanwhile, the operator also noted that it is in discussion with various vendors for 5G procurement and with the banks for funding arrangements.
With regard to its financial obligation, Takkar revealed that the total commitment for the spectrum acquired in the recently concluded 5G auctions is Rs 188 billion, with annual installment of Rs 16.8 billion. Vi has, however, made the payment towards the first annual installment on August 17, 2022, following which the government has allocated the spectrum.
Besides, Takkar cautioned that tariffs remain unsustainable despite various interventions taken by telcos to improve their average revenue per user (ARPU). The ARPU, a key performance metric, of all mobile operators in India is well below the Rs 200 mark, with Airtel reporting the highest ARPU of Rs 183 in the June 2022 quarter, followed by Jio (Rs 176), and Vi (Rs 128).
With regard to future strategy, Takkar noted that Vi will continue to have a focused approach to investments towards the profitable areas to utilise capital expenditure (capex) effectively, while ensuring that it offers superior customer experience in these areas, and adding that the company is focused on transforming itself from a telco to a ‘techco’ (technology company).
