Vi may diverge from rivals on 5G, likely to price it cheaper
Vodafone Idea (Vi) CEO Akshaya Moondra has signalled that the telco may keep its 5G base pricing lower than bigger rivals Reliance Jio and Bharti Airtel to attract customers as it will be a new entrant in the space.
«A decision on 5G pricing will be taken closer to launch, but when you are just starting with a (5G) network which is not yet mature, one will have to look at pricing in that fashion,» Moondra said at Vi's fiscal first quarter earnings call Tuesday.
He was responding to an analyst query on Vi's likely approach to 5G monetisation, and whether it is likely to emulate Jio and Airtel, who have both sharply hiked entry-level 5G pricing thresholds to boost average revenue per user (ARPU).
The Vi CEO added that the telco had «no information or engagement with the government» on whether the latter as a public shareholder would retain its 23.8% stake in the telco or divest gradually.
Moondra did not reveal specific 5G launch timelines, but said Vi has firmed up its 5G rollout plans and is actively engaged with vendors to finalise gear procurement contracts and start deliveries in the quarter starting October 1.
The telco, though, is trying to address potential equipment replacement needs in regions where it has previously deployed network gear from Chinese vendors. «In many circles where we have Chinese equipment (read: from Huawei), where 5G is not allowed. Discussions are on (with vendors) on what is the best way to address that. We expect the discussions to get concluded in a month,» the Vi CEO said.
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