Vi’s Strategic Move Amid Delayed 5G Rollout
In a bid to stay competitive in India’s home broadband market, Vodafone Idea (Vi) has initiated trials of Vi AirFiber, a 5G Fixed Wireless Access (FWA) solution, in collaboration with multiple partners. The move comes as Vi grapples with delayed 5G rollout due to financial constraints despite acquiring spectrum in the 2022 auctions.
Vi unveiled Vi AirFiber during the India Mobile Congress (IMC) 2023, positioning it as a potential rival to offerings like Airtel’s Xstream AirFiber and Jio’s AirFiber. However, the commercial launch of Vi AirFiber awaits the nationwide availability of Vi’s 5G networks.
Currently, Vi has conducted a small-scale deployment of 5G in four circles, partnering with four vendors. The telco plans to extend 5G deployment to additional circles to meet regulatory obligations. Vi’s cautious approach to 5G rollout aims to optimize returns on investment amid the absence of significant 5G use cases.
While Vi readies itself for broader 5G deployment, competitors like Jio have already penetrated thousands of cities and towns with their AirFiber services. Airtel, although adopting a more conservative strategy, is expected to scale up its AirFiber offering in response to market demand.
However, the viability of FWA services hinges on overcoming cost challenges. High operational costs could undermine the profitability of FWA ventures for telcos, necessitating careful strategic planning and investment.
As the Indian telecom landscape evolves with the convergence of 5G and broadband services, Vi’s foray into Vi AirFiber testing underscores its commitment to innovation and competitiveness in the market.
