Vi Dismisses Airtel ’s 5G Challenge Amid Postpaid Base Debate

$IDEA (Vi) CEO Abhijit Kishore dismissed concerns regarding Airtel’s "5G Fast Lane" priority postpaid service, asserting that Vi possesses sufficient network capacity to deliver a high-quality experience for both prepaid and postpaid users. Discrepancy in Postpaid Numbers: While Vi reported reaching 31.9 million postpaid subscribers by adding 1.8 million in the June quarter, analysts noted that excluding machine-to-machine (M2M) SIMs places Vi's core mobile postpaid base at 10.28 million—reflecting a 2.3% quarter-on-quarter drop. Financial Recovery & ARPU Growth: Vi delivered an operational turnaround by narrowing losses and adding subscribers for the first time since its 2018 merger. Driven by network upgrades and 2G-to-4G/5G migrations, its customer Average Revenue Per User (ARPU) excluding M2M rose to ₹195. Capital Expenditure & Debt Raising: The operator successfully secured its initial funding tranche of ₹6,400 crore as part of a larger ₹35,000-crore bank debt drive. These funds are vital to support Vi’s ₹45,000-crore three-year capex plan and upcoming spectrum fee obligations. Network Expansion Strategy: To meet its long-term targets, Vi has already placed ₹9,000 crore in network orders. The company aims to complete its 4G rollout across 17 circles over the next 18 months alongside deploying tens of thousands of 5G sites. Long-Term Financial Outlook: Vi reiterated its three-year guidance to triple its cash EBITDA from the FY26 baseline of ₹9,200 crore, relying on organic ARPU expansion, customer plan upgrades, and anticipated market price corrections.