Vi to Introduce 5G within 9 Months of Fundraise: Vodafone CEO By CIOTechOutlook Team

Vi to Introduce 5G within 9 Months of Fundraise: Vodafone CEO

CIOTechOutlook Team | Tuesday, 16 April 2024, 02:53 IST

Vodafone Idea, a mobile network operator firm, will begin offering 5G services in six to nine months after the organization finishes its value subsidizing round of â‚¹20,000 crore this quarter, its CEO added.

The telecom firm intends to spend more than 70% of its over â‚¹45,000 crore raise money using obligation and value into capex for 5G rollout and 4G network expansion, an individual acquainted with the matter said.

Akshaya Moondra added that the â‚¹18,000-crore follow-on share deal would see the public authority stake weakened to 24%, which could ascend to an agreeable 32-33% if the center chooses to change over a portion of the vital contribution into greater value.

"If you recollect the reforms package that was announced in September 2021, the government had provided for that, if the installments arising out of the deferment of four years, which will start after September 2025...as per the reforms package that will be converted to equity by the government. We plan to pay the instalments out of our cashflows. However, there is government support available as part of the reform package," Moondra said.

"If that conversion were to happen, they would probably not exceed the (shareholding) levels or stay in the ballpark that they have today. So, I don't think that's a cause of concern for us," he said.

The public authority is the biggest investor of Vi, holding around 32%. After value weakening in the ongoing round, its portion will be diminished to 24%, which is an agreeable reach for the public authority to additionally broaden a changes bundle in FY26 when the moratorium period of range installments concludes, Moondra said.