STARS ALIGNED FOR Vi?

When Vodafone Idea (Vi) Chief Executive Officer Akshaya Moondra thanked customers last week for being "an integral part of the company's story", the telecom world took notice.

- SUBHAYAN CHAKRABORTY

Moondra's letter to Vi users was a message that the telco was ready for a new chapter of growth, complete with 4G network expansion and 5G rollout. The letter made sure to include the company's recently concluded ₹18,000 crore follow-on public offer (FPO) and the trust of the investors in brand Vi.

Around the same time that Moondra's letter went out, signalling good tidings, brokerage reports captured a similar sentiment of things looking up for Vi.

"The stars are finally aligning for Vi following completion of its long delayed equity raise," said Citi Research. While hoping that the equity raise would help Vito narrow the gap with peers Reliance Jio and Bharti Airtel on 4G coverage and 5G rollout, Citi struck a cautionary note, pointing out that a lot needed to be done still. Topping the list - no points for guessing that is tariff hikes. Multiple tariff hikes, actually.

Indeed, there are question marks on the impact of the equity raise alone.

What are the tariff hikes that the company must roll out to ensure a robust user base and future? Will the first step of equity raise lead to the promoters — Aditya Birla Group and UKheadquartered Vodafone plc-opening their purse-strings? What is the strategy of the Union government, which picked up the largest shareholding in Vilast year after converting some of the pending dues of the telco? There could be some visibility on Vi's tariff hike plans once the company's top management gets into the post-earnings call with analysts later this week. And the benchmark numbers-ranging from monthly Arpu (average revenue per user) to subscriber number additions will get sliced and diced after it announces fourth quarter results for 2023-24 on Thursday.

Debt and dues