A leading telecommunications giant is poised to make waves in the digital landscape with its highly anticipated 5G mobile broadband services, set to launch in March 2025. The rollout promises to deliver cutting-edge connectivity solutions with competitive pricing plans, marking a significant milestone in India’s telecommunications evolution.
Share Price Movement
The share price of Vodafone Idea Limited reached an intraday high of 1.37 percent to Rs. 8.12 per share on Thursday, an increase from its previous close of Rs. 8.01 per share. The market capitalisation now stands at approximately Rs. 56,038 crore as of January 02, 2025.
Share Price Surge: Why?
Vodafone Idea (Vi) plans to launch its 5G mobile broadband service in March with competitively priced plans to regain customers from Reliance Jio and Bharti Airtel, who already have nationwide 5G networks. Vi aims to start 5G in India’s top 75 cities and key industrial hubs. They might offer plans up to 15% cheaper than Jio and Airtel’s current offerings, potentially sparking a price war. A Vi spokesperson confirmed their commitment to providing top-notch 5G services and enhancing 4G coverage.
Analysts suggest Vi may increase dealer commissions and promotional spending to attract high-value 5G users. In FY24, Vi spent Rs. 3,583 crore on dealer commissions, more than Jio and Airtel. Vi’s CEO hinted that their 5G base pricing might be lower than rivals, with a final decision to be made closer to the launch. Vi needs to quickly expand 4G and launch 5G in key markets to stop customer losses and compete with Jio and Airtel effectively.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Vodafone Idea’s consolidated revenue from operations has increased by 2.01 percent YOY from Rs. 10,716 crore in Q2 FY24 to Rs. 10,932 crore in Q2 FY25 and increased by 4.03 percent QoQ from Rs. 10,508 crore in Q4 FY24.
The company’s consolidated net loss has decreased YoY from a loss of Rs. 8,738 crore in Q2 FY24 to a loss of Rs. 7,176 crore in Q2 FY25.
Market Outlook
The Indian mobile telecommunications industry is a key driver of economic growth, supporting socio-economic development and narrowing the rural-urban digital divide. With over 1.165 billion subscribers and rising wireless data usage, the sector underpins India’s digital transformation.
Despite challenges like low rural tele-density and hyper-competition, consolidation and stable price increases have supported recovery. The sector remains attractive due to low tariffs, high data consumption, and opportunities for growth through digitalisation and technological advancements, requiring substantial investments for improved services.
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Shareholding Pattern
As of the September 2024 shareholding pattern, Vodafone Idea Limited is primarily held by the promoters at 37.32 percent, foreign institutional investors hold 12.69 percent, and the public with 21.94 percent.
About Company
Vodafone Idea, commonly known as Vi, is a prominent Indian telecommunications provider established on August 31, 2018, following the merger of Vodafone India and Idea Cellular. Headquartered in Mumbai and Gandhinagar, Vi offers integrated GSM mobile telephony services to millions across India and, as of September 2024, serves 212.45 million subscribers, ranking as India’s third-largest telecom network and the twelfth globally. Vi’s comprehensive services include voice calling, SMS, advanced 5G-enabled data solutions, enterprise solutions, and value-added digital services like IoT solutions.
Continuously investing in cutting-edge infrastructure, Vi manages over 8,000 MHz of spectrum nationwide with a focus on delivering seamless connectivity and innovative services to enhance user experiences. Committed to India’s digital transformation, Vi aims to empower people and businesses by aligning with “Digital India” initiatives and striving to connect communities and drive sustainable technological growth nationwide.
Written By Fazal Ul Vahab C H
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