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Vodafone Idea's New CEO Battles Debt and Subscriber Losses Amid 5G Rollout Woes
17 Aug
Summary
- Vodafone Idea faces mounting debt, subscriber losses, and slow 5G rollout
- New CEO Abhijit Kishore inherits a cash-strapped, highly indebted business
- Telco's 5G rollout trails rivals Airtel and Jio, missing out on lucrative markets
As Abhijit Kishore takes charge as the new CEO of Vodafone Idea (Vi) on August 19, 2025, he inherits a cash-strapped, highly indebted business that is struggling to keep up with its rivals. The telco is battling subscriber losses due to its inability to match the services offered by Airtel and Jio.
Vi's paucity of funds has stalled a meaningful upgrade of its services, leaving it behind its competitors. While the company had planned a Rs 55,000 crore capex cycle over the next three years for 4G densification and 5G rollout, this hinges on the availability of fresh debt and equity. Vi's debilitated balance sheet, with Rs 1.99 lakh crore owed to the government and Rs 1,945 crore to banks and foreign investors, poses a significant challenge.
Moreover, Vi's 5G rollout has been tentative, with the telco launching services in just 22 cities by mid-2025, compared to pan-India coverage claimed by Airtel and Jio. The company also trails in 4G coverage, which continues to hurt its ability to retain and attract higher-value subscribers. As Airtel and Jio aggressively pursue the lucrative fixed wireless access (FWA) market, Vi is yet to make a play for this opportunity, risking being a latecomer.
Kishore's success as the new CEO will depend on his ability to secure fresh funding, obtain government relief, and close the widening gap with Airtel and Jio in terms of network coverage and service offerings.
