Vodafone Idea Gears Up for 5G Launch in 2025 – Should You Consider Buying Vi Stock?

Highlights

• Vodafone Idea plans to launch its 5G services by March 2025.
• The aim is to offer competitively priced plans potentially up to 15% cheaper than competitors.
• Vi has raised ₹24,000 crore in equity funding and plans an additional ₹25,000 crore in debt to support the 5G rollout.
• It has the goal to deploy 75,000 5G sites over three years.
• Citi maintains a Buy/High-Risk rating for Vi with a target price of ₹13 per share indicating an upside of 67% from its previous closing price.

Vodafone Idea (Vi) is set to launch its 5G mobile broadband services by March 2025. According to an Economic Times report, the telecom company plans to introduce competitively priced 5G plans to challenge Reliance Jio and Bharti Airtel, which already dominate the 5G market.

Vi aims to cover the top 75 cities across its 17 priority circles focusing on industrial hubs with high data demand.

Vi’s entry-level 5G plans are expected to be up to 15% cheaper than competitors, potentially triggering a price war. Alongside its 5G rollout, the company plans to expand its 4G coverage to attract more high-value prepaid customers.

Analysts suggest Vi may boost dealer commissions and promotional spending to gain market share.

Vi CEO Akshaya Moondra has confirmed that the company will price its base 5G plans below competitors with final pricing decisions closer to the launch date.

Vi has recently raised ₹24,000 crore in equity funding and plans to secure an additional ₹25,000 crore in debt to support its 5G expansion.

The telco aims to deploy 75,000 5G sites over three years, leveraging its spectrum holdings in the 3.5 GHz and 1,800 MHz bands. Vi has also signed a $3.6 billion agreement with network vendors like Nokia, Ericsson and Samsung to facilitate its rollout.

On January 2, Vi shares traded at ₹8.04 on the NSE, marking a 0.37% rise from the previous close of ₹8.01.

Stock Target for 2025

Citi maintains a ‘Buy/High Risk’ rating for Vodafone Idea with a target price of ₹13 per share—a potential upside of 67% from its previous closing price of ₹7.77. The brokerage highlighted that securing debt funding will be crucial for the stock’s growth.

An Extraordinary General Meeting (EGM) is scheduled for January 7 to seek shareholder approval for a preferential allotment of shares worth ₹1,980 crore to Vodafone Group Plc at ₹11.28 per share.

Vi’s aggressive pricing and expansion plans position it as a key player to watch in the 5G market with significant potential for stock growth.

FAQs

Q1. When is Vodafone Idea (Vi) planning to launch its 5G services?

Answer. Vodafone Idea (Vi) is set to launch its 5G mobile broadband services by March 2025.

Q2. How does Vodafone Idea (Vi) plan to price its entry-level 5G plans?

Answer. Vi’s entry-level 5G plans are expected to be up to 15% cheaper than competitors potentially triggering a price war.

Q3. What is the target price for Vodafone Idea (Vi) stock according to Citi?

Answer. Citi maintains a ‘Buy/High Risk’ rating for Vodafone Idea, with a target price of ₹13 per share—a potential upside of 67% from its previous closing price of ₹7.77.

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