MediaNama’s take: Vodafone Idea’s (Vi) move towards tech and enterprise offerings is an indicator of a wider industry trend within the telecom sector to diversify revenue streams. We see a similar trend with Airtel, which recently launched its telco-grade cloud. Prior to this launch, the company had talked about the softness in growth within the connectivity business and the need to focus on adjacencies. Its peer in the private telco space, Reliance Jio, has been providing a range of tech services for a while now. The company offers cloud services, a phone call transcription AI, and is part of Reliance’s diverse range of offerings to begin with.
The timing of this pivot is particularly significant given Vi’s financial constraints and ongoing need for capital infusion. The enterprise segment, as Vi CEO Akshaya Moondra noted, doesn’t face the same capital intensity as mobility services, making it an attractive avenue for revenue growth without proportional infrastructure investment.
What’s the news:
Vodafone Idea (Vi) wants to evolve from a telecom service provider to a tech company, the company’s then- Chief Executive Officer (CEO) Akshaya Moondra mentioned in its earnings call for the quarter ending June 2025 (Q1FY26). “We are evolving from a traditional telecom provider into a full-scale tech co, extending beyond connectivity to offer advanced solutions such as hybrid Software-Defined Wide Area Network (SD-WAN), Session Initiation Protocol (SIP), Internet of Things (IoT), industrial IoT, and cloud services,” Moondra said. He explained that the company has partnered with Hewlett Packard Enterprise to provide Local Area Network (LAN) switching and security solutions.
During the call, the company’s new CEO, Abhijit Kishore, mentioned that he sees a bullish scenario in the enterprise segment. “One thing which we see, which is growing very rapidly right now in the IoT space, is the metering deals, which I alluded to, and you will see that us and also all operators are adding significant additions to the IoT space, largely driven. One is, of course, these Point of Sale (POS) machines, which are growing, but this is a bit of a fluctuating business. But automated metering is something which is picking up,” Moondra added to Kishore’s comment, mentioning the specific business that shows scope for growth. He further noted that the enterprise business does not have the same capital constraints as the mobility business (telco offerings).
Performance of Vi’s newly launched 5G services:
Vi began rolling out 5G services on its network starting March 2025 and reports good uptake of services in all four cities where it has launched them. “I think in all the four cities where we have, I mean, two circles and two cities where we have launched 5G, the uptake has been very good. Traffic has quickly started moving to 5G, wherever people have 5G devices,” Moondra said, discussing the company’s 5G…
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