3 weeks ago
Vodafone Idea needs periodic tariff hikes to sustain 5G investment
Vodafone Idea is a big phone company in India.
It owes a lot of money and wants to build new, faster internet networks called 5G.
Building those networks costs a lot of money.
The company's boss, Kumar Mangalam Birla, says phone bills in India are some of the cheapest in the world.
He thinks phone companies should be allowed to charge a little more sometimes.
That way, they can pay for building better networks.
The company is also talking to banks to borrow money for its big building plan.
Vodafone Idea already has about 192.8 million customers.
Birla says better networks will help India grow and become a developed country by the year 2047.
Vodafone Idea Chairman Kumar Mangalam Birla said periodic tariff hikes are essential for telecom operators to sustain investment and finance next-generation network rollout.
Vi is in discussions with lenders to fund its ₹45,000 crore capital expenditure plan.
Vi's Average Revenue Per User stood at ₹190 in the March 2026 quarter, which Birla said remains among the lowest in the world.
Vi ended FY26 with 192.8 million subscribers, including 128.9 million on 4G and 5G networks, and gained customers in the March quarter.
Birla said FY26 was a year of resolution for the company, while FY27 begins a period of execution.
- Who
- Kumar Mangalam Birla, Chairman of Vodafone Idea, in a letter to shareholders.
- What
- Birla said periodic tariff hikes are essential for operators to sustain investment, as Vi discusses lender funding for its ₹45,000 crore capex plan.
- Where
- India.
- When
- Wednesday, referencing the March 2026 quarter and FY26 results.
- Why
- Because India's ARPU remains among the lowest in the world, and sustained investment is needed to finance next-generation network rollout.
Key facts
- Company
- Vodafone Idea (Vi)
- Chairman
- Kumar Mangalam Birla
- ARPU (March 2026 quarter)
- ₹190
- Total subscribers (FY26)
- 192.8 million
- 4G and 5G subscribers
- 128.9 million
- Capital expenditure plan
- ₹45,000 crore
- India broadband subscriptions (March 2026)
- Crossed one billion
Quotes
Kumar Mangalam Birla
Chairman of Vodafone Idea and Aditya Birla Group CEO
“Government policy has also played a decisive role in reviving the industry, enabling the expansion of digital public services, online education, healthcare, financial inclusion and e-governance. Telecom is no longer merely a commercial sector. It has become essential national infrastructure, underpinning India's ambition to become a developed economy by 2047”
livemint.com
“Yet India's Average Revenue Per User (ARPU) remains among the lowest in the world. Periodic tariff adjustments are therefore essential if operators are to sustain investment and finance the rollout of next-generation networks”
livemint.com
Sources
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