Vodafone would invest Rs 55,000 crore and prioritize the expansion of its 4G network above that of 5G

The third-largest telecom operator in the nation, Vodafone Idea Limited (Vi), continues to prioritize growing its 4G networks even as other carriers have begun to roll out 5G.

The telecom company said on Friday that it will concentrate on 4G development and invest Rs 55,000 crore in capital expenditures over the next three years.

“Capex will be used to increase 4G capacity where sites have previously been installed and to extend 4G coverage by deploying more sites. The third is 5G, whose deployment has to begin from scratch, and after that is enterprise Since increasing 4G coverage is our top goal and the primary reason we are losing consumers, our capital expenditure schedule will be expedited. In an investor call for the fourth quarter of FY24, Vodafone Idea CEO Akshaya Moondra said, “The rest will happen as traffic grows.”

Because the telecom hasn’t made network improvements or 4G service improvements, its rivals have been gaining users. In the first 11 months of FY24, Vi lost 16.25 million members, according to TRAI statistics. It has before said, however, that the lack of a suitable 4G network rather than the non-launch of its commercial 5G services is the reason for the subscriber depletion.

Apart from Bharti Airtel and Reliance Jio, Vi is the only private telecom that has not yet announced a commercial 5G launch. Only in order to fulfill the Minimum Rollout Obligation and avoid fines from the Department of Telecommunication (DoT), has the telecom company introduced 5G networks throughout the nation. To achieve the minimum deployment requirement, 5G has so far been introduced in four circles: Delhi, Chennai, Punjab, and Maharashtra (Pune). It plans to shortly provide 5G services, but not on a commercial basis, in Mumbai and Bihar.

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