Vodafone Idea unveils ₹45,000 crore capex plan over three years
New Delhi: Vodafone Idea said on Tuesday that it is targeting double-digit revenue growth, three-fold increase in operating profit and continued subscriber addition in the next three years. ₹45,000 crore capital expenditure plan under Vi 2.0 strategy.
With the proposed investment ₹18,000 crore spent in the last six quarters takes the company’s total network investment ₹60,000 crore has been achieved in a period of four and a half years, the company said at an analyst meeting in Mumbai.
Telecom operator seeks raise to support capex plan ₹25,000 crore in bank financing and ₹10,000 crore in unfunded facilities.
“We are not looking at equity (for fundraising) at this point,” Abhijit Kishore, CEO of Vodafone Idea, said at the analyst meeting.
“The AGR overhang is now behind us… I think this (relief from the government) is a definitive long-term solution that gives very clear visibility on our cash flow,” Kishore said.
He said capex will go towards network expansion. The telecom operator plans to achieve 4G parity with rivals within 12 to 24 months, around 17 priorities that contribute to more than 99% of its revenues.
will expand simultaneously 5G coverage In urban markets with populations over 20,000 in the next 12-30 months.
“With FWA (fixed wireless access) on 5G, we would definitely want to get into SOHO (small office home office) and the home space where we are not currently in. We are looking at some of the options and opportunities when it comes to getting into a small office or home office,” Kishore said.
Kishore’s comments come at a time when Vodafone Idea is getting some breathing room from the government regarding payment of adjusted gross revenue dues. The cabinet decided to freeze the company’s assets on December 31. ₹87,695 AGR dues as of the end of December.
“The AGR lapse meant that financing was not available. Without financing, investments and distributions suffered. This negatively impacted the network experience, affected brand perception and led to subscriber churn,” Kishore said, adding that the company would soon recover from negative customer additions.
Later Freezing of AGR duesThe telco’s total expense towards AGR payments over the next six years from March 2026 to March 2031 will be: ₹744 crore, maximum ₹124 crore per year. You will also have to pay ₹100 crore per annum for four years from March 2032 to March 2035.
The government had approved a payment plan for the company to clear frozen AGR dues during FY 32-41. In accordance with the Supreme Court’s decisions in October and November, the government also started working on re-evaluating the company’s AGR dues.
While AGR dues are frozen, Vodafone Idea will pay around ₹49,000 crore. Installment approx. ₹7,000 crore in the first year, ₹Second and around 15,000 crore ₹27,000 crore in the third.
