Shares of Vodafone Idea Ltd surged nearly 5% in early trading on Wednesday after the telecom company announced the launch of its 5G services in Mumbai.

In a stock exchange filing, the company confirmed that its 5G services in the city would be available starting today, supported by its competitive spectrum assets and investments in next-generation infrastructure.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

For the 5G rollout, Vodafone Idea (Vi) has teamed up with Nokia, integrating state-of-the-art equipment. Additionally, the company has implemented an AI-powered Self-Organizing Networks (SON) system to enhance network efficiency and provide a seamless user experience.

Following the announcement, Vodafone Idea’s share price surged 4.64%, reaching an intraday peak of ₹7.47 on the NSE. The stock has been on a positive trajectory for the last two trading sessions.

Expansion Plans and Capital Expenditure

Investor confidence was further strengthened by Vi’s capital expenditure plans. Over the next three years, the company aims to invest between ₹50,000 crore and ₹55,000 crore to expand 4G coverage to 90% of India while rolling out 5G services in key locations.

In the past year, Vi has secured around ₹26,000 crore in equity funding, including India’s largest follow-on public offering (FPO) worth ₹18,000 crore and a promoter contribution of approximately ₹4,000 crore. These funds will facilitate faster capital expenditure deployment, the company stated.

Vodafone Idea’s focus on expanding its 4G services highlights its strategic approach to strengthening its market presence before aggressively rolling out 5G nationwide. The telecom company has been actively working on increasing its spectrum efficiency, network reliability, and customer outreach to ensure smooth service delivery.

Exploring Satellite Connectivity

In addition to mobile network expansion, Vodafone Idea has started discussions with satellite communication companies like Starlink and OneWeb to explore connectivity solutions in remote areas where traditional telecom infrastructure is difficult to establish. Satellite internet is emerging as a key solution to bridge digital connectivity gaps in rural and underserved regions.

“We are in talks not only with Starlink but also with two to three other players. The discussions will develop in alignment with our strategy,” said Jagbir Singh, Chief Technology Officer (CTO) of Vodafone Idea, in an interview with Moneycontrol.

His remarks come at a time when competitors Bharti Airtel and Reliance Jio have partnered with Elon Musk-led SpaceX to introduce Starlink’s satellite internet services in India. With growing competition in both terrestrial and satellite-based telecom services, Vodafone Idea is looking to diversify its offerings to stay competitive.

Market Competition and Future Prospects

The Indian telecom industry is witnessing an intense battle between major players such as Reliance Jio, Bharti Airtel, and Vodafone Idea. While Jio and Airtel have already launched 5G services across multiple cities, Vi has been relatively slow in its 5G rollout due to financial constraints. However, with its recent fundraising efforts and strategic partnerships, the company is now positioning itself to accelerate its deployment plans.

Vodafone Idea’s ability to compete effectively in the 5G space will depend on its execution strategy, pricing models, and customer acquisition efforts. Analysts suggest that while Vi has a strong brand presence and customer base, its success in the 5G era will hinge on its ability to offer superior connectivity, competitive pricing, and value-added services.

Industry experts believe that Vodafone Idea’s move to invest heavily in expanding both 4G and 5G networks is essential for the company’s long-term survival and growth. The telecom sector is evolving rapidly, with technological advancements such as Open RAN (Radio Access Network), AI-driven network management, and private 5G solutions becoming key differentiators for telecom providers.

With Vi’s renewed focus on technological advancements, network expansion, and strategic collaborations, the company is looking to regain market share and improve its financial performance. Investors and industry watchers will be closely monitoring its progress in the coming months to assess whether its ambitious plans translate into tangible results.