In Short:
Vodafone Idea is expanding its retail presence to improve customer experience and boost subscriber growth. They plan to open new stores in larger towns, focusing on high-value customers. Despite past financial issues, they are enhancing network capacity and preparing to launch 5G services by March 2025, starting in major cities. The aim is to reach 90% of India’s population with 4G by mid-2024.
Vodafone Idea is making significant strides to enhance its distribution network as part of a strategy aimed at improving customer experience and driving subscriber growth. Avneesh Khosla, the Chief Marketing Officer of Vodafone Idea, indicated in an interview with ETTelecom that new stores, particularly in larger towns, are set to be established in the coming weeks and months. These outlets will target customers with a high average revenue per user (ARPU) and high net-worth individuals (HNI).
Khosla stated, “By increasing our presence in key markets, we aim to better serve our target consumers and capitalize on emerging opportunities.” He emphasized the company’s commitment to creating a superior network experience, acknowledging that consumer purchases ultimately revolve around the quality of this experience.
Despite facing challenges due to insufficient capital, Khosla expressed optimism about the significant progress made in enhancing network capacity across various clusters and markets over the past few months. He acknowledged the need for further improvements in their physical infrastructure, stating that there is a plan to densify the network by adding more sites and expanding into new regions.
Upcoming 5G Launch
Khosla revealed that the long-anticipated launch of 5G technology is imminent. “Within the next 45 to 60 days, you will start to see the impact of these developments,” he remarked. As a late entrant into the 5G market, Vodafone Idea is looking to roll out 5G services across 17 circles by March 2025, beginning with major cities like Delhi and Mumbai. The company aims to ensure that at least 90% of India’s population has access to 4G coverage by June next year.
Financial Commitments
Vodafone Idea recently secured equity funding totaling Rs 24,000 crore, which includes Rs 18,000 crore raised from a follow-on public offer. The majority of these funds will be allocated towards strengthening 4G coverage and facilitating the rollout of 5G, as Vodafone Idea strives to enhance its competitive standing against rivals Reliance Jio and Bharti Airtel, both of whom launched commercial 5G services in October 2022.
Addressing Subscriber Challenges
On the topic of subscriber losses, Khosla highlighted that network densification will bolster the company’s competitive edge. He stated, “As we expand into new areas, we expect to enhance the quality of our network experience, which will help reduce churn as customer retention improves.” Khosla conveyed optimism regarding achieving positive net subscriber growth, particularly with the forthcoming introduction of 5G technology, given the segment of customers expressing eagerness for these services.
