AGR Relief Paves Way for

IDEA

’s Network Push

(Vi) announced its Vi 2.0 strategy, targeting double-digit revenue growth, a three-fold increase in operating profit, and sustained subscriber additions over the next three years. The plan includes a ₹45,000-crore capex program, taking total network investments to ₹60,000 crore over 4.5 years, supported by fresh bank funding and non-funded facilities. With AGR dues frozen and visibility on cash flows improving, Vi aims to regain competitiveness through aggressive 4G and 5G expansion. Capex and Funding Plan - Proposed capex: ₹45,000 crore over three years. - Combined with ₹18,000 crore already spent, total network investment: ₹60,000 crore. - Funding strategy: ₹25,000 crore bank loans + ₹10,000 crore non-funded facilities. - No equity raise planned at this stage. Network Expansion Goals - Achieve 4G parity with rivals across 17 priority circles (99% of revenue) within 12–24 months. - Roll out 5G coverage in urban markets with populations above 20,000 over 12–30 months. - Entry into SOHO (small office/home office) and home broadband via 5G fixed wireless access (FWA). Regulatory Relief and Obligations - Government froze ₹87,695 crore AGR dues as of Dec 2025. - AGR payments scheduled for FY32–41, easing near-term cash flow. - Spectrum payment obligations: ₹49,000 crore over next three years (₹7,000 crore in year one, ₹15,000 crore in year two, ₹27,000 crore in year three). - Annual AGR outgo: ₹744 crore (FY26–31), followed by ₹100 crore annually (FY32–35). Management Commentary - CEO Abhijit Kishore: AGR relief provides long-term visibility on cash flows. - Past funding constraints hurt network experience and brand perception, leading to subscriber losses. - Company expects to reverse negative customer additions with improved network quality.