YOU ARE AT:5GVodafone Idea aims 5G to account for 40% of revenue in two...

Vodafone Idea aims 5G to account for 40% of revenue in two years

Vodafone Idea has recently completed its minimum rollout obligation towards 5G deployments in four telecom circles in India

Indian carrier Vodafone Idea expects 5G technology to account for nearly 40% of its overall revenues in 24-to-30 months, according to local press reports. This goal implies that Vodafone Idea will target 5G coverage in roughly the top 100 cities and towns that generate 40% of its current revenues, a company spokesperson said.

The launch of its 5G network is still pending while the company has recently completed its minimum rollout obligation towards 5G deployments in four telecom circles in India.

In its presentation with investors, Vodafone Idea, a joint venture between U.K. carrier Vodafone and India’s Aditya Birla Group, said its delayed entry into India’s 5G race would help it access the latest advances in 5G technology in a cost-efficient way.

The Indian telco also noted that 90% of its radio gear is already 5G-ready. During the presentation, the carrier also announced plans to refarm its airwaves in the 900 MHz and 2.1 GHz bands as part of plans to expand the telco’s 4G coverage in its 17 priority markets across India.

In a previous earnings call with investors, Vodafone Idea’s CEO Akshaya Moondra had said the telco is looking to roll out 5G services in six to seven months after closing its pending fundraise. The telco has said the funds would be used to expand 4G capacity and launch 5G technology. Rival carriers Bharti Airtel and Reliance Jio Infocomm already cover most of India with their 5G networks.

Moondra also that Vodafone Idea expects to switch off its 3G network in 2025. Vodafone Idea has already turned off 3G in Maharashtra, Gujarat, Andhra Pradesh, Mumbai and Kolkata, according to the report.

In the carrier’s annual report, the telco had said it has concluded device testing of all major OEMs on its upcoming 5G mobile broadband network. Vodafone Idea has partnered with various OEMs to test the compatibility of available 5G handsets in 5G clusters in the cities of Delhi and Pune. “The company is working towards rolling out 5G for consumers. The deployment will be accelerated subsequent to the consummation of fund raising,” Vodafone Idea previously said.

U.S.-based Open RAN (O-RAN) provider Mavenir recently said it expects to secure a commercial agreement from Indian telco Vodafone Idea for the deployment of the latter’s 5G network by the end of the year.

According to the report, the first pilot of the technology for Vodafone Idea is being conducted in Jalandhar, Punjab to test the equipment and functioning of the network.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.