Can a $4.9B Investment Revive Vodafone Idea?

Can a $4.9B Investment Revive Vodafone Idea?

With us today is Vladislav Zaimov, a specialist whose career has been dedicated to enterprise telecommunications and navigating the complexities of network risk management. We’re here to unpack the massive network overhaul underway in the Indian telecom market, focusing on one carrier’s aggressive strategy to not only catch up but also innovate. We’ll explore the enormous logistical undertaking of their 4G expansion, the strategic thinking behind their capital investments, and how they are balancing the immediate need for 4G parity with a calculated, next-generation 5G and FWA rollout.

With plans to expand 4G population coverage to over 95% in your 17 operating circles, what are the primary logistical challenges in deploying thousands of new towers? Could you walk me through the key steps and metrics you use to prioritize which regions get upgraded first?

The scale of this operation is immense, and the logistics are incredibly complex. We’re not just putting up towers; we’re orchestrating a massive supply chain for radio equipment, fiber, and power, all while navigating local permitting and site acquisition. Just in the last quarter, we successfully brought over 6,500 new unique 4G towers online, which gives you a sense of the velocity. Our prioritization is data-driven. We start by identifying the largest coverage gaps—the areas where we can make the biggest jump from our previous 77% coverage baseline. Then, we overlay that with population density and data demand metrics. It’s a constant balancing act between connecting underserved communities to reach that 95% goal and reinforcing capacity in areas where usage is already high.

You’ve recently expanded 4G data capacity by over 43%, which supported a 22% improvement in average speeds. Can you share a few examples of the core and transmission network upgrades that made this possible, and how these enhancements directly translate to a better user experience?

Absolutely. Those numbers represent a fundamental shift in network performance that customers can actually feel. The capacity jump of over 43% wasn’t just about adding more antennas; it was a deep-seated upgrade of our network’s nervous system. We significantly bolstered our core network, which is the brain of the operation, allowing it to process data traffic much more efficiently. Simultaneously, we overhauled the transmission network—the highways that carry data from the towers to the core. Think of it as widening every road and increasing the speed limit. For the user, this means that 22% speed improvement manifests as buffer-free video streaming, instantaneous app downloads, and crystal-clear video calls, even during peak hours. It’s about transforming the network from something that just works to something that works brilliantly.

A significant INR 450 billion investment is planned over three years to achieve 4G parity with competitors. Beyond sheer coverage, what specific performance benchmarks define “parity” for you, and how will this investment be allocated to close the performance gap in key urban and rural markets?

Parity for us is a multi-faceted goal that goes far beyond simply matching the footprint of rivals like Reliance Jio and Bharti Airtel. While achieving over 95% population coverage is a critical first step, true parity is defined by the user’s quality of experience. We’re targeting key performance indicators like median download and upload speeds, network latency, and reliability in both dense urban centers and expansive rural areas. The INR 450 billion investment is strategically allocated to hit these benchmarks. A significant portion goes to the radio access network (RAN) to densify our tower grid, but equally important are the investments in the core and transmission backhaul to ensure those towers perform at their peak. It’s about ensuring that a customer in a bustling city market and one in a remote village have a consistently fast and dependable connection, truly leveling the playing field.

How do you balance the aggressive 4G expansion with a strategic 5G rollout and the evaluation of Fixed Wireless Access (FWA)? What criteria determine if a market gets an upgraded 4G site, a new 5G deployment, or becomes a candidate for home broadband via FWA?

It’s a carefully calibrated, three-tiered strategy. Our immediate, overwhelming priority is achieving ubiquitous 4G coverage and capacity, as this serves the vast majority of our customers today. That’s our foundation. Layered on top of that is our 5G rollout, which is surgical and targeted. We’re deploying 5G in key urban markets and high-traffic zones where the demand for higher bandwidth and lower latency is most acute. The criteria there involve enterprise customer concentration, user device penetration, and competitive pressure. Finally, Fixed Wireless Access is being evaluated as a distinct opportunity for the home broadband market, especially in areas where laying fiber is cost-prohibitive. The decision for a specific market is based on a blend of demographics, existing infrastructure, and the most efficient use of our capital and spectrum assets.

It has been suggested that a later 5G launch can provide certain advantages. Could you elaborate on the specific technological or cost-saving benefits you’ve been able to leverage by not being first to market, and how this informs your long-term network architecture?

That’s correct. While there’s a certain allure to being first, a calculated, later entry into the 5G market has yielded tangible benefits for us. By observing the initial rollouts, we’ve been able to deploy more mature and power-efficient second-generation 5G radio and core network technology. This equipment is often more reliable and, crucially, comes at a lower cost per gigabyte of capacity as the technology has scaled globally. This approach allows us to make more strategic investments without the financial burden of early adoption. It informs a more sustainable long-term architecture, where we can leapfrog some of the initial technological hurdles and build a more capital-efficient, high-performing 5G network from the get-go.

What is your forecast for the Indian telecom market over the next three years as network investments accelerate across the board?

I believe the Indian telecom market is on the cusp of a significant new growth cycle. After a somewhat weaker 2025, we’re forecasting a strong return to growth in 2026, driven by a renewed wave of investment from all major operators. This isn’t just about one company’s plan; it’s a sector-wide push to enhance both 4G and 5G infrastructure. For consumers, this will mean better speeds, more reliable coverage, and more innovative services. For the industry, it signals a period of intense but healthy competition focused on network quality. The next three years will be defined by an accelerated race to deliver a world-class digital experience across the entire country.

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