Vodafone Idea (Vi) is facing funding delays that could impact its ability to strengthen its 4G and 5G networks, potentially allowing Reliance Jio and Bharti Airtel to capture more market share in highrevenue circles. Analysts warn that Vi’s struggles to secure ₹25,000 crore in debt financing may slow its expansion, giving competitors an edge.
Key Highlights:
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Market Share at Risk: Vi’s subscriber market share has dropped to 17% in FY25, down from 21% in FY22, as its network investments lag behind Jio and Airtel.
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HighRevenue Circles in Focus: Vi holds over 20% revenue market share in Mumbai, Kerala, Gujarat, Haryana, Kolkata, Maharashtra, and UPWest, which collectively generate 50% of its total revenue.
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Jio & Airtel’s Advantage: Both rivals are expected to increase capital investments in these circles to attract Vi’s customers amid its financial struggles.
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Debt Challenges: Vi’s ₹55,000 crore capex plan for FY25–27 hinges on securing bank loans, but delays could further weaken its position.
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Competitive Landscape: Jio and Airtel already control 81% of sector revenues, a figure projected to rise to 85% by FY27, highlighting their growing dominance.
Vi’s ability to secure funding and accelerate network expansion will be crucial in determining whether it can hold its ground or continue losing market share to its stronger competitors.
Sources: Economic Times, CNBC TV18, Communications Today