Analyst Concall
Planned 4G tower additions to drive Vodafone Idea's coverage
This story was originally published at 18:42 IST on 2 June 2025
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--Vodafone Idea: To invest to expand 4G towers to around 215,000
--CONTEXT: Vodafone Idea mgmt's comments in post-earnings analyst call
--Vodafone Idea: Blocking 600,000 SMS per day to check cyber-fraud
--Vodafone Idea: To expand 5G coverage to 17 circles by Aug from 4 cities now
--Vodafone Idea: See 4G subscribers growing with continued investments
--Vodafone Idea: INR 50 bln-INR 60 bln capex under implementation in Apr-Sep
--Vodafone Idea: Adjusted gross revenue dues around INR 760 bln as on Mar 31
--Vodafone Idea: Meeting 4G towers expansion target will need bank funding
By Arya S. Biju
MUMBAI – Telecommunications company Vodafone Idea Ltd. expects its fourth-generation coverage to grow to around 90% of the population from 83% as of March, with its planned investment in 4G tower addition, Akshaya Moondra, chief executive officer of the company, said in a post-earnings analyst call. The company plans to take its total 4G tower count to 215,000-220,000, Moondra said.
During 2024-25 (Apr-Mar), the company expanded its 4G coverage to 83% from 77% in the previous year, Vodafone Idea said in a press release. Currently, INR 50 billion-INR 60 billion of capital expenditure is underway and a large part of which would be implemented in Apr-Jun and some may spill over to Jul-Sept, the company's management said.
The company expects its 4G coverage to reach 84% of the population with the capital expenditure currently underway and to reach 85-86% with more capital expenditure during FY26. However, to reach the target of 90% of population coverage and to take the tower count to 220,000, the company would require bank funding, the management said.
During the March quarter, the company added 6,900 unique 4G towers, the largest addition in a quarter since its merger with Idea Cellular Ltd., the company said in a post-earnings press release Saturday. As of Mar. 31, the company's 4G subscriber base was 126.4 million, up from 126 million as on Dec. 31. Further, the company's plan to expand fifth-generation services to all 17 circles where it has 5G spectrum by August is underway, its management said. Currently the company offer 5G services in four cities--Mumbai, Delhi, Chandigarh, and Patna. "In all these four cities, the number of 5G subscribers who are using 5G as a percentage of people who have 5G devices is... 60%," the management said.
As of Mar. 31, the company's adjusted gross revenue dues was around INR 760 billion, the company management said. Answering a question on whether the government intends to join the company board, as it currently holds 49% stake, Moondra said "...based on the best of my understanding and commentary...from the government themselves is that they (the government) have no intent of taking any role in the management of the company." The government's increased shareholding is aimed at helping reduce the company's dues, he added.
In April, the company issued 36.95 billion shares to the government's Department of Investment and Public Asset Management at an issue price of INR 10 each amounting to INR 369.5 billion. This was after the Ministry of Communications decided to convert the outstanding spectrum auction dues of the company, including deferred dues repayable after the expiry of the moratorium period, into equity shares to be issued to the government. With this, the government's stake in the company increased to 48.99% from 22.60% earlier.
To tackle the rise in cyber frauds, Vodafone Idea has implemented various initiatives including nationwide checking of suspicious short message services. The company said it blocks around 600,000 SMS per day and tags about 1.8 million SMS per day as suspected spam. It has also implemented identification of suspected spam calls in Mumbai and Delhi.
The company's March quarter earnings announced on Saturday showed its consolidated net loss for the March quarter increased sequentially to INR 71.66 billion. Consolidated revenue for the quarter was down nearly 1% on quarter at INR 110.14 billion. On Monday, shares of the company closed 1.6% higher at INR 7.03 on the National Stock Exchange. End
Edited by Ashish Shirke
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