Vodafone Idea plans to launch 5G mobile broadband service, in which the company aims to regain market share from its competitors. For this, Vodafone Idea is planning to launch its 5G service in March 2025 under an aggressive pricing strategy, as The Economic Times reported on January 2.
According to the news portal, Vodafone Idea is planning to launch its 5G network in the top 75 cities of the country. Initially the company will focus on 17 priority cities, including major industrial hubs, as these are areas with heavy data usage.
Shares of Vodafone Idea closed 1.37 per cent higher at ₹8.13 after Thursday's market session, while earlier they were at ₹8.02.
Vodafone Idea's move against competition
In the Indian telecom sector, Vodafone Idea competes with Reliance Jio, Bharti Airtel and BSNL. Under Vodafone Idea's 5G launch plan, entry-level mobile plans could be up to 15 percent cheaper than the existing plans from Jio and Airtel. The move could lead to a price war in the market, as reported by telco broadband tariff trackers.
A Vodafone Idea spokesperson said, "We are ready to launch 5G services and are committed to providing the best experience and value to our customers."
Improvement in 5G coverage and 4G network
According to the spokesperson, Vodafone Idea has adequate and competitive 5G spectrum in its 17 priority cities, which will allow the company to expand 5G coverage as well as improve its 4G network.
Commenting on the development, a senior analyst said, "The company may increase dealer commissions and promotional spend to win back high-value 5G prepaid users from its rivals while controlling distributor costs."
However, Vodafone Idea did not respond to media comments regarding discounts on 5G plans and increasing dealers' commissions.
Competition with Jio and Airtel
When the industry tariff was hiked, in July 2024, Jio and Airtel had increased their floor prices for 5G mobile broadband service. According to the report, these companies had pushed users to upgrade to higher-priced plans to maximize the benefits of next-generation 5G service.
Meanwhile, Vodafone Idea's aggressive pricing and 5G network expansion plans are likely to usher in a new era of competition in the telecom sector.
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(Indian Express Time could not independently verify the report)
By Anil Paal
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