Vodafone Idea Falls Back After 5G-Driven Two-Day Surge

Vodafone Idea’s share price experienced a downturn on Thursday, reversing early gains after rallying for two consecutive sessions. The telecom stock had gained nearly 5% in the previous trading session, driven by the company’s announcement of the launch of its 5G services in Mumbai.

On Thursday, Vodafone Idea shares initially rose by as much as 1.87%, reaching ₹7.59 apiece on the Bombay Stock Exchange (BSE). However, the upward momentum was short-lived as the stock soon gave up its early gains and slipped over 2% into negative territory by mid-session.

The recent rally had been fueled by excitement around Vodafone Idea’s entry into the 5G market. On Wednesday, the Aditya Birla Group-backed telecom operator officially announced the rollout of its 5G services in Mumbai, marking a significant step toward providing next-generation connectivity to its customers in the city. This development was seen as a strategic move to enhance the company’s competitive position in the Indian telecom market, where rivals have already made significant strides in 5G deployment.

Despite the initial positive market response, the stock’s pullback on Thursday indicates that investor sentiment remains cautious. The launch of 5G services is expected to play a key role in Vodafone Idea’s long-term growth strategy, but market participants appear to be weighing other factors influencing the stock’s performance.

Vodafone Idea (Vi) announced that its 5G services will be available in Mumbai starting from today. The launch is supported by the company’s competitive spectrum portfolio and substantial investments in next-generation infrastructure. This strategic move reflects Vi’s commitment to providing enhanced network capacity, improved performance, and greater reliability to its customers in the city.

In a regulatory filing dated March 19, Vodafone Idea emphasized that its 5G rollout is backed by a well-balanced spectrum holding, which positions the company to offer faster data speeds and more stable connections. The telecom operator highlighted that its infrastructure investments have been focused on strengthening network quality and ensuring a seamless user experience.

With the launch of 5G services in Mumbai, Vodafone Idea aims to meet the growing demand for high-speed internet and low-latency connectivity. The company stated that its next-generation network would enable customers to enjoy smoother streaming, faster downloads, and improved overall connectivity, reinforcing its commitment to technological advancement and customer satisfaction.

Vodafone Idea (Vi) has partnered with Nokia to enhance its 5G rollout in Mumbai, equipping the network with the latest generation of advanced technology. According to the company, the newly integrated equipment has been designed to be more efficient and environmentally friendly. The leaner and more energy-efficient design is expected to reduce the network’s overall power consumption, contributing to a more sustainable operational model.

To further enhance the network’s performance and reliability, Vodafone Idea has deployed an AI-based Self-Organizing Network (SON) system. This advanced system is designed to continuously monitor and adjust network performance in real time, ensuring that customers experience consistent, high-quality connectivity. The AI-driven system automatically detects and resolves network issues, optimizes bandwidth allocation, and manages traffic load to provide a smoother and more reliable user experience.

As part of its 5G launch, Vodafone Idea has introduced competitive introductory tariff plans to attract new and existing customers. The company announced that Vi subscribers on plans starting at ₹299 would be eligible for unlimited 5G data under this special offer. This makes Vodafone Idea’s 5G pricing one of the most competitive in the market, positioning it to appeal to a wide range of customers looking to experience high-speed internet and next-generation connectivity at an affordable rate.

Vodafone Idea (Vi) has confirmed that it is in exploratory discussions with Starlink and other satellite communication (satcom) providers as part of its strategy to enhance network quality and expand telecom services. This clarification comes in response to a recent news report suggesting that the company was engaged in talks with Starlink, the satellite internet service operated by Elon Musk’s SpaceX, and other similar providers.

In an exchange filing dated March 19, Vodafone Idea stated that it regularly explores various strategic initiatives and partnerships in the ordinary course of business to improve service quality and broaden its network coverage. The company emphasized that its discussions with satcom providers, including Starlink, are still in the early stages and form part of its broader efforts to strengthen connectivity infrastructure and enhance customer experience.

By exploring satellite-based communication solutions, Vodafone Idea aims to address connectivity challenges in remote and underserved areas, where traditional terrestrial networks may be difficult to deploy. Satellite networks have the potential to provide seamless coverage in challenging terrains and improve overall network resilience. The company noted that while these talks are preliminary, they reflect Vodafone Idea’s ongoing focus on adopting innovative technologies to improve service delivery and customer satisfaction.

Over the past 12 months, Vodafone Idea (Vi) has successfully raised a total of ₹26,000 crore in equity funding, strengthening its financial position and enabling the company to accelerate its capital expenditure (capex) plans. This fundraising effort included a record-breaking Follow-on Public Offer (FPO) of ₹18,000 crore, which stands as the largest FPO in India’s corporate history. The FPO reflects strong investor interest and confidence in the company’s long-term strategy and growth potential.

In addition to the FPO, Vodafone Idea also secured a promoter contribution of ₹4,000 crore. This additional capital infusion from the company’s promoters demonstrates their continued commitment to supporting Vodafone Idea’s business objectives and strategic initiatives.

The funds raised through these initiatives are expected to be used to scale up the company’s network infrastructure, including the rollout of 5G services and the enhancement of existing network capabilities. The capital will also enable Vodafone Idea to invest in new technologies, improve service quality, and expand its market reach, reinforcing its competitive position in the Indian telecom sector.

This significant equity fundraising marks a pivotal step in Vodafone Idea’s efforts to strengthen its financial foundation, improve operational efficiency, and drive future growth in the rapidly evolving telecom market.

Vodafone Idea (Vi) has outlined an ambitious capital expenditure (capex) plan of ₹50,000 to ₹55,000 crore over the next three years as part of its strategic push to strengthen and expand its network infrastructure. The company aims to extend its 4G network coverage to approximately 90% of the Indian population, thereby improving connectivity and customer reach across the country. In parallel, Vodafone Idea plans to roll out 5G services in key markets, enhancing network speed, capacity, and overall customer experience. This investment underscores the company’s commitment to improving service quality and positioning itself as a strong competitor in the Indian telecom sector.

Despite these strategic initiatives, Vodafone Idea’s stock performance has faced significant pressure over the past year. The company’s share price has declined by 10% over the past month and has dropped more than 8% on a year-to-date (YTD) basis. The stock’s performance over a longer period reflects even sharper declines, with the share price down 30% over the past six months and 42% over the past year.

At 10:00 AM on the latest trading day, Vodafone Idea shares were trading at ₹7.26 apiece on the Bombay Stock Exchange (BSE), marking a decline of 2.55% from the previous session. The recent weakness in stock performance comes despite the company’s ongoing efforts to strengthen its financial position and accelerate the deployment of next-generation network services.