Vodafone Idea Managing Director and CEO Ravinder Thakkar said the company had spent a significant amount of spectrum acquiring the recently held auctions that required the need to charge a premium for 5G services.
- It expects total charges for mobile services to rise by the end of the year. “Given the fact that a fair amount of money has been spent on spectrum, we think 5G should be priced at a premium over 4G.
- You can price it at a premium, but of course within that premium you could have a situation where the number of gigabytes you get is more. Because you’re probably consuming more, given the extra bandwidth you get in 5G,” he said.
- He added that the increase in data consumption on the 5G network will depend on the use cases that are developed and adopted by consumers.
- VIL has acquired spectrum worth Rs.18,800 crore comprising radio waves in the medium band (3300MHz band) in 17 priority circuits and spectrum in the 26GHz band in 16 circuits for 5G services.
- The company also acquired additional 4G spectrum in three districts in Andhra Pradesh, Karnataka and Punjab.
- The new spectrum offer adds an annual installment commitment of Rs 1,680 crore to the company. VIL posted a marginal narrowing of its consolidated loss to Rs 7,296.7 crore for the June quarter compared to the same period last year as higher tariffs boosted its realization.
- The telecom operators lost Rs 7,319.1 crore in the last quarter. VIL’s revenue from operations grew to approximately Rs 10,410 crore in the quarter ended June 30, 2022, an improvement of nearly 14 per cent over the same period last year.