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Vodafone Idea Plans to Expand 4G Services and User Base by 2020

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Vodafone Idea plans to combine technologies like MIMO and dynamic spectrum reforming to achieve its 80 per cent user base target by 2020

Vodafone Idea Ltd (VIL) plans to expand its 4G network services to reach out to over 80 per cent of the population by 2020. Balesh Sharma, Chief Executive Officer, said that the merging of the two huge network providers had already covered 50 per cent of the 4G coverage and the telecom operator was planning to raise it to over a billion users by 2020.

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Talking about the market presence, he said that both the brands will be present in the market and this, in turn, would support the newly formed telecom giant to compete with the other network operators. He believes that Vodafone Idea can compete at the spectrum front.

Market is unsustainable

According to VIL, India’s market is unsustainable following the aggressive competition and declining Average Revenue Per User (ARPU) and the telecom industry, together, will be unable to make huge investments in the Digital India initiative.

VIL investments to ramp up performance

Vodafone Idea will be investing around Rs. 27,000 crores to achieve its goal to top the ranking in India. Sharma said that the company had revised the plans with exits of low utilisation sites, speeding up real estate rationalisation, in-store rationalisation and RFP topping the priority list. Additionally, it will work on simplifying the tariff plans besides emphasizing on network expansion.

Technology to serve better

The telecom operator will be using a combination of technologies to achieve success in the market. Dynamic spectrum refarming (DSR) and multiple input multiple output (MIMO) technologies will be used to gain the market share to ramp up competition with other telecom giants.

Analysts are, however, doubtful about VIL’s plans to drive the market.

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