Moving from “survival mode” to aggressive growth, Vodafone Idea (Vi) officially unveiled a massive ₹45,000 crore capital expenditure (capex) plan on Wednesday, January 28, 2026.
The three-year “Vi 2.0” strategy was announced by CEO Abhijit Kishore during the company’s Q3 FY26 earnings call. This investment is in addition to the ₹18,000 crore already spent over the last six quarters, bringing Vi’s total network commitment to ₹63,000 crore through 2029.
1. The “Vi 2.0” Investment Roadmap
The ₹45,000 crore fund is earmarked for a complete network overhaul to close the gap with Reliance Jio and Bharti Airtel.
- 4G Parity (12–24 Months): Vi aims to achieve absolute network parity with competitors across its 17 priority circles, which currently contribute over 99% of its revenue.
- 5G Expansion (12–30 Months): The company will aggressively expand 5G coverage to all urban markets with a population of 20,000 or more. It plans to add 5G to 100+ cities in the next few months alone.
- 2G to 4G Migration: Vi will focus on converting remaining 2G sites to 4G in its 5 “non-priority” circles to improve overall spectral efficiency.
- FWA Entry: The telco will finally enter the Fixed Wireless Access (FWA) segment, targeting small offices and home offices (SOHO) to challenge the current Jio-Airtel duopoly.
2. Funding the ₹45,000 Crore Gamble
In a notable shift, the company is ruling out fresh equity dilution for now, relying instead on debt and internal accruals.
| Funding Source | Amount | Status |
| Bank Debt | ₹25,000 Crore | In advanced discussions with a consortium of banks. |
| Non-Funded Facilities | ₹10,000 Crore | Planned for bank guarantees and letters of credit. |
| Internal Accruals | ₹10,000 Crore | Generated from operations over 3 years. |
| Promoter Support | ₹2,300 Crore | Cash via CLAM settlement with Vodafone Group in 2026. |
3. The “AGR Relief” Catalyst
The massive capex was made possible by the recent government decision to freeze Vi’s AGR dues at ₹87,695 crore for ten years.
- Cash Flow Clarity: Vi now only needs to pay ₹124 crore per year toward AGR for the next six years (FY26–FY31), significantly freeing up cash for network hardware.
- Promoter Confidence: Aditya Birla Group Chairman KM Birla stated that the “fog has cleared,” allowing the business to look beyond survival toward sustainable growth.
4. Target Milestones (FY26–FY29)
Vi has set high benchmarks for its performance over the next three years:
- Revenue: Targeting double-digit growth annually.
- EBITDA: Aiming to triple its operating profit (EBITDA) by 2029.
- Subscriber Retention: Using the new network capacity to stop the current churn (lost 3.8 million users in Q3 FY26).
Conclusion: A High-Stakes Turnaround
While analysts at ICICI Securities noted that ₹45,000 crore is still “underwhelming” compared to the hundreds of thousands of crores spent by Jio and Airtel, it represents the most significant investment Vi has made since the 2018 merger. By focusing its limited resources on the 17 circles that actually drive its revenue, Vi is attempting a surgical strike to regain its footing as India’s third viable private telecom player.
