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Vodafone to invest Rs 13,000 crores in India for expansion & more

Telecom service provider Vodafone has announced that it will invest Rs 13,000 crore for capacity augmentation and new business initiatives in India. This will be broken down as Rs 8,000 crore for the Digital India initiative to enhance, upgrade and expand network coverage and Rs 4,000 crore towards the Make in India initiative. It will also increase its staff to 15,000 employees in the next 2 years.

For its Make in India initiative, Rs 3,000 crore will go towards development of customer experience centres in Pune and Ahmedabad and Rs 1,000 crore for setting up a Tier-4 data centre and Rs 1,000 crore towards the payment bank for which Vodafone M-Pesa has received an in-principle license from the RBI.

At present, Vodafone claims to serve 188 million users, out of which 100 million are from the rural areas. The company claims that since starting its operations in India in 2007, it has already invested over Rs 111,000 crore and contributed over Rs 100,000 crore to the exchequer.

Internet and voice user base: Vodafone India had 23.8 million 3G Internet connections for the quarter quarter ended September 30, 2015. In comparison, the telecom operator had 13.6 million connections in the same period last year, and 22.1 million subscribers in the preceding quarter. Vodafone’s total data connections stood at 66.5 million, down marginally down 0.45% quarter-on-quarter (q-o-q) from 66.8 million in the previous quarter. However, on a year-on-year basis, data connections increased 16% from 57.2 million.

Other data highlights

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– 1.7 million 3G connections added during the quarter, down from 2.7 million additions in the previous quarter.

Total 2G data connection base is at 42.7 million for the quarter, down from 44.7 million connections in the previous quarter.

Total data usage increased by 74% year-on-year (YoY). Data revenues now represent 18.9% of the company’s service revenue.

Blended prepaid mobile ARPU (Average Revenue Per User) for the quarter is Rs 144, marginally down from Rs 149 in the previous quarter.

Average data usage per user for the quarter is 393 MB, up from 357 MB in the previous quarter.

– Vodafone said it had 97,000 M-Pesa agents and 665,000 active users as of September

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Project Spring: Vodafone claims that since the launch of Project Spring they have added over 22,000 new 3G sites, taking the total to nearly 40,000 and that their population coverage to 94% of target urban areas. The urban population coverage was at 91% in the preceding quarter.

Our Vodafone coverage here.

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