Vi 5G launch to depend on use case
Vi 5G launch – The rollout of 5G services by the indebted telecom provider Vodafone Idea will be influenced by a number of variables, including use cases, consumer demand, competitive dynamics, etc., a senior company executive said on Monday.
According to Vi Managing Director and CEO Ravinder Takker, who addressed the 27th annual general meeting, the company’s promoters had contributed Rs 4,940 crore. Additionally, the business is actively talking to investors about raising capital.
VIL purchased radio waves in the mid band (3,300 MHz band) in 17 priority circles and spectrum in the 26 GHz band in 16 circles for 5G services for a total of Rs 18,800 crore. Additionally, the corporation purchased 4G spectrum in three circles in Punjab, Karnataka, and Andhra Pradesh.
The new spectrum bid increases the company’s annual payment commitment by Rs 1,680 crore.
According to Takkar, “5G roll-out will depend on numerous aspects” including how use cases develop, customer demand, capacity needs, and competitive dynamics.
According to Takker, the business has now purchased spectrum in every frequency band and strengthened its 4G spectrum holding by purchasing additional radiowaves in Punjab, Andhra Pradesh, and Karnataka.
Vi 5G launch
Takker claimed that while tariff increases by telecom operators in the past have helped margins, the present rates for mobile services were still unsustainable and needed to be increased further.
As a result of price increases, VIL’s consolidated loss for the June quarter decreased somewhat from the same quarter a year earlier to Rs 7,296.7 crore. The telco’s loss for the previous quarter was Rs 7,319.1 crore.
The operating revenue for VIL increased by over 14% to around Rs 10,410 crore in the quarter that ended on June 30, 2022.
Its Average Revenue Per User (ARPU), a crucial metric for telecom operators, was Rs 128 for the quarter, up from Rs 104 in Q1 FY22. This represents an increase of 23.4% year over year, aided by tariff increases.
At the end of the April–June 2022 quarter, VIL’s total gross debt—excluding lease liabilities and including interest accrued but not due—was Rs 1,99,080 crore. This included debt from banks and other financial institutions worth Rs 15,200 crore, as well as Rs 1,16,600 crore in deferred spectrum payment obligations and Rs 67,270 crore in AGR liabilities.
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