Vodafone Idea Shares Surge 4% As 5G Services Launch In Mumbai

Mumbai: Telecom operator Vodafone Idea has officially launched its 5G services in Mumbai, offering unlimited access for subscribers on plans starting at Rs 299. The company also announced that it is strengthening its network to meet the increasing demand for high-bandwidth applications such as streaming, gaming, and real-time cloud services, according to CNBC

Following the announcement, Vodafone Idea’s stock opened 4 per cent higher on Wednesday, March 19, reflecting investor optimism about the company's expansion into the next-generation network. The telecom provider has partnered with Nokia for its 5G rollout in Mumbai and plans to expand its coverage across India in a phased manner.

However, Vodafone Idea remains behind competitors Reliance Jio and Bharti Airtel, both of which have already completed their pan-India 5G deployment. Despite this, the company aims to enhance customer experience with widespread coverage and competitive pricing.

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A report by Motilal Oswal last month highlighted that stabilising subscriber losses is critical for Vodafone Idea’s long-term survival. According to recently released telecom data, the company’s subscriber base declined by 1.71 million in December, a sharper drop compared to 1.5 million losses in November, bringing its total user base down to 207.25 million.

Over the past year, Vodafone Idea has raised Rs 26,000 crore in equity, including India’s largest Follow-on Public Offer (FPO) worth Rs 18,000 crore, alongside a promoter contribution exceeding Rs 34,000 crore. The telecom giant has outlined a capital expenditure plan of Rs 50,000 - Rs 55,000 crore over the next three years to strengthen its operations.

Vodafone Idea shares are currently trading at Rs 57.4, marking a 4.1 per cent increase. However, the stock remains 63 per cent below its 2024 peak of Rs 119 and continues to trade below its FPO price of Rs 11.