Vodafone Idea to Invest ₹45,000 Crore Over Next Three Years Under Vi 2.0 Strategy

Struggling telecom operator Vodafone Idea has announced a major investment plan of ₹45,000 crore over the next three years as part of its Vi 2.0 transformation strategy. The company aims to achieve double-digit revenue growth, triple its operating profit, and return to net subscriber additions amid regulatory relief on AGR dues.

Vodafone Idea Announces ₹45,000 Crore Capex Plan

Vodafone Idea, which has been facing prolonged financial stress, has outlined an ambitious growth roadmap for the next three years. The company is targeting double-digit revenue growth, a three-fold increase in operating profit, and consistent subscriber additions.

As part of its Vi 2.0 strategy, Vodafone Idea has announced a capital expenditure (capex) plan of ₹45,000 crore. The company stated at an analyst meet in Mumbai that this proposed investment, combined with the ₹18,000 crore already spent over the last six quarters, will take its total network investment to over ₹60,000 crore across a four-and-a-half-year period.

Capex Funding Plan

To support the capex programme, Vodafone Idea plans to raise ₹25,000 crore through bank funding and ₹10,000 crore via non-funded facilities.

Vodafone Idea Chief Executive Officer Abhijit Kishore clarified that the company is currently not considering equity fundraising.

“At this point, we are not looking at equity,” he said.

AGR Relief Brings Clarity on Cash Flows

Abhijit Kishore stated that the burden of Adjusted Gross Revenue (AGR) has effectively ended following government relief.

“The AGR issue is now behind us. In my view, this is a firm, decisive, and long-term solution that provides clear visibility on our cash flows,” he said.

Network Expansion and 5G Rollout Plans

Vodafone Idea plans to deploy the capex primarily toward network expansion and improvement.

• The company aims to achieve 4G network parity with competitors across its 17 priority circles within the next 12 to 24 months.

• These priority circles contribute over 99% of the company’s revenue.

• Vodafone Idea also plans to expand 5G coverage across urban markets with populations exceeding 20,000 within the next 12 to 30 months.

Plans to Enter FWA and SOHO Segments

Abhijit Kishore also highlighted Vodafone Idea’s interest in Fixed Wireless Access (FWA) services using 5G technology.

“We definitely want to enter the SOHO (Small Office Home Office) and home segments where we currently do not have a presence. We are evaluating multiple options and opportunities to enter the small office and home office space,” he said.

AGR Dues Freeze and Payment Schedule

The announcement comes after the government granted Vodafone Idea relief on its AGR dues. On December 31, the Cabinet decided to freeze the company’s AGR dues amounting to ₹87,695 crore up to the end of December.

According to the revised payment plan:

• Vodafone Idea will pay a total of ₹744 crore toward AGR dues between March 2026 and March 2031, with annual payments capped at ₹124 crore.

• From March 2032 to March 2035, the company will pay ₹100 crore annually for four years.

Impact of AGR Burden on Business

Abhijit Kishore acknowledged that the AGR burden had earlier restricted funding access.

“Due to the AGR burden, funding was not coming in. Without funding, investment and deployment suffered, which hurt network experience, impacted brand image, and led to subscriber losses,” he said.

He added that Vodafone Idea expects to exit the phase of negative subscriber additions soon.

Spectrum Payment Obligations Remain a Challenge

Despite the AGR relief, Vodafone Idea will still face spectrum payment obligations of nearly ₹49,000 crore over the next three years.

• First instalment: approximately ₹7,000 crore

• Second instalment: ₹15,000 crore

• Third instalment: approximately ₹27,000 crore

The government has already approved a payment plan for clearing frozen AGR dues during FY32–FY41, and the reassessment of AGR dues has begun following Supreme Court orders issued in October and November.