- LATEST
- WEBSTORY
- TRENDING
BUSINESS
Vodafone Idea may lag peers in 4G coverage
WEAK SIGNAL: Co’s focus on synergy fructification is likely to cost its revenue market share
Updated : Nov 23, 2018, 05:15 AM IST
 "Telecom sector")
TRENDING NOW
)
IND vs AUS: Rohit Sharma, Virat Kohli to retire from Test cricket after Border-Gavaskar Trophy? Report makes big claim
)
Pushpa 2 trailer: SS Rajamouli reviews Allu Arjun's action-drama, calls it...
)
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan tells Amitabh Bachchan: 'I hope people don't...'
)
Bigg Boss 18: Rajat Dalal says he won 14 medals for India, Shilpa Shirodkar replies 'desh ke liye kuch kiya hai toh...'
)
Meet man, who made first mobile call in India from Nokia 29 years ago, it cost Rs...
)
Amitabh Bachchan praises Abhishek Bachchan's new film, netizens ask 'kash ye Aishwarya...'
)
7 times XXX, Gandii Baat actress Aabha Paul crashed the internet by flaunting her sexy curves
)
Aishwarya Rai describes her 'ideal man' in viral statement amid divorce rumours with Abhishek Bachchan: 'He better be..'
)
Shweta Tiwari's wedding photos with Bigg Boss 13 contestant Vishal Aditya Singh go viral, here's the truth behind them
)
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan says he'll do 'whatever it takes' to be there for Aaradhya
)
This Pakistani Influencer's private video leaked online, days after Minahil Malik and Insha Rehman's clips
)
Meet Mathira Khan, Pakistani influencer whose private video leaked after Minahil Malik, Imsha Rehman
)
'Good to be back': After breaking up with Malaika Arora, Arjun Kapoor reunites with his 'partner-in-crime after ages'
)
'It's Abhishek, Aishwarya': Netizens react after celeb divorce lawyer says star couple is facing 'breakdown in marriage'
)
Model's bold dance in towel at India Gate raises eyebrows, netizens say arrest her, watch viral video
The largest telecom player Vodafone Idea may have plans to increase its 4G coverage in the country to 80 % by March 2020, but analysts say the company would lag behind peers by at least a year.
Akshaya Moondra, CFO, Vodafone Idea, on Thursday said by March 2020, we will be able to have a 4G population of about 80% and the capacity increase from the current levels to 2.5 times. By March 2019, the target is to reach 70 % for 4G coverage.
Research firm Ambit Insights in an analyst note said Vodafone Idea's capacity expansion goal is an unambitious 2.5x of current capacity, assuming that Vodafone Idea maintains current network utilisation, its network traffic in FY21E would be 80% of Jio's current data traffic.
"Vodafone Idea will trail both rivals, which are investing more aggressively to create capacity. The company's focus on synergy fructification is likely to cost its revenue market share....network integration will be a challenge given the breakneck pace with which the company is likely to proceed," it said.
Based on current data usage, Reliance Jio's data consumption is already 3x of Vodafone Idea. This would imply that Vodafone Idea shall reach in FY21E where Jio stands today, the note added.
Analysts at Motilal Oswal say despite a target of 80 % 4G coverage by FY20, Vodafone Idea would still lag peers by about 12 months. Though, the company plans to deploy efficient network equipment like dynamic spectrum refarming, ultra-broadband and Massive MIMO technologies with an aim to reduce capex and opex.
Reliance Jio and Bharti Airtel have targeted over 90% coverage in the next six months, which will put Vodafone Idea behind by 12 months.
Vodafone Idea is also exploring the sale of its fibre network of over 156,000 km (intra and intercity routes) and plans to play a role in independent fibre sharing entity in the future to restrict incremental capex, the note by Motilal Oswal said.
The entry of Reliance Jio has disrupted the market with its free voice calls and dirt cheap data tariffs. The financial health of the telecom industry has taken a nosedive since then triggering a consolidation phase.
