Vodafone Idea (Vi), the third-largest telecom operator in India, has got everything it needs from the government. The telecom sector, along with Vodafone Idea, is in a very good position post the announcement of relief measures. Everything right from the adjusted gross revenue (AGR) dues to litigation has been taken care of by the government. Vodafone Idea is now in a very good position, and its stock price reflects that. Before the relief package was announced, Vi’s shares were trading at around Rs 7 on average. It even touched Rs 4 due to the company’s falling financials and unstable business. But after the relief package, Vi’s shares have crossed Rs 11 and are continuously trading around Rs 10 for the last few weeks. But after receiving everything it needed in the short and medium-term, what would the telco want next?
Vodafone Idea Can Focus on 5G, Increasing ARPU, Broadband, Enterprise Business While Expanding 4G Networks
While the relief measures have kicked in and helped the telco see a glimmer of a bright future, Vi must focus on getting aggressive with its plans to ensure that it never comes into a bad position ever again. The telco still has millions of customers it can earn continuously from. With increasing the tariffs in the near future, Vi will be able to benefit from the increasing average revenue per user (ARPU). Further, the telco can also focus on developing 5G use-cases, which it is already doing in a pretty big manner. Vi has been testing 5G for multiple things such as smart cities, innovative use cases, enterprise use cases, and healthcare. Further, the third-largest telco in India also has a fiber broadband subsidiary called You Broadband. With this company, Vodafone Idea offers FTTH services in multiple states of the country, including Gujarat, Maharashtra, and more. One area where Vodafone Idea is already actively working in is the enterprise segment. Vi Business allows enterprises around the country to leverage the 4G network of Vodafone Idea for connectivity purposes. There is a multitude of services that Vodafone Idea offers at which the enterprise customers can look at. While all of this is going on, Vi needs to work on its 4G networks as well. 4G is going to be the difference-maker for the telco in the medium-term. People are not going to stop consuming 4G network services for at least the next four to five years. 5G is something that’s really appealing for enterprises. The applications that an average consumer interacts with today on his/her smartphone doesn’t require 5G like speeds at all times. Even a strong 4G network can fulfil all the data and demand needs of the consumers. Thus, if Vi can only work on expanding the reach of its networks in India, it would be a game-changer for the telco. There are a lot of other things as well that the telco can do. With satcom companies in the scene, Vi can also create partnerships with companies such as OneWeb, Starlink, and more to offer inflight connectivity services to customers.
