Vodafone Idea Ltd. (Vi) saw its shares jump over 5% during early trading on Wednesday following the launch of its 5G services in Mumbai. The company’s stock reached a day’s high of ₹7.44 as investors responded positively to this strategic move.
The telecom operator’s stock also gained momentum as the company explores potential partnerships with satellite communication (satcom) players, aiming to compete with rivals Reliance Jio and Bharti Airtel, which have already partnered with Starlink.
Vi eyes 5G expansion with ₹55,000 cr investment plan
The struggling telecom giant is offering unlimited 5G data for plans starting at just ₹299, positioning itself competitively in a market dominated by Reliance Jio and Bharti Airtel. For its Mumbai rollout, Vi has partnered with Nokia to integrate next-generation equipment, promising enhanced user experience for streaming, gaming, video calls, and downloads.
Despite the positive market reaction, analysts remain cautious about Vi’s ability to close the gap with its competitors. The company plans to invest ₹50,000-55,000 crore over the next three years to expand its 4G network and roll out 5G in key regions. Additionally, Vi is in talks with satcom players to address connectivity challenges in areas lacking traditional infrastructure.
While the 5G launch marks a significant step, Vi’s diminishing subscriber base and financial struggles continue to pose challenges. The stock, currently trading at ₹7.4, remains down 43% over the past year, reflecting the uphill battle the company faces in a highly competitive telecom market.
