NEW DELHI: Vodafone Idea Limited (VIL), the country’s third-largest telecom service provider, said there is significant headroom for average revenue per user (ARPU) as usage has increased considerably.
The company, in its latest investor presentation, mentioned ARPU has not increased in line with the usage, and the customers’ ability to pay higher prices has been established. “Prices need a further uptick to generate reasonable returns and support future investments,” the company said.
On 5G services, the telco said it had completed the minimum rollout obligation (MRO) in four circles. The telco further said it has sufficient mid-band and mmWave spectrum for the foreseeable future. Its Vi AirFiber home broadband solution has been tested with multiple partners.
For 5G, the company targets to cover 40% of its revenue in the first 24 to 30 months. It will deploy small cells in hotspot locations of metros and large cities for a better experience.
The loss-making company in February 2024 announced to raise funds nearly `45,000 crore through a combination of equity and debt. The company will raise 20,000 crore via a combination of equity and/or equity-linked instruments.