Vodafone Idea (Vi) is accelerating its network expansion after placing capital expenditure (capex) orders worth more than Rs 13,200 crore under its three-year investment programme. The telecom operator said nearly Rs 6,000 crore of capex against these orders had been executed as of its Q2 FY27 results announcement on November 12.
Vi’s network investment is gaining momentum as it seeks to improve 4G coverage, expand 5G services and strengthen its core and transmission infrastructure. The company spent Rs 3,946 crore on capex during the September quarter, more than doubling its investment compared with the previous quarter.
The expansion comes at an important time for Vi. Its subscriber base increased sequentially to 194.4 million in Q2 FY27, while its 4G and 5G subscriber base reached 131 million. The operator is attempting to turn improved network availability into better customer retention and sustained subscriber additions.
Vi places capex orders worth Rs 13,200 crore
Vi confirmed that it had placed capex orders worth more than Rs 13,200 crore towards its three-year capex guidance. Of this amount, nearly Rs 6,000 crore had been executed, according to the company’s Q2 FY27 media release.
The operator’s quarterly capex reached Rs 3,946 crore in Q2 FY27, representing a 104.5% increase over the Rs 1,930 crore spent in Q1 FY27.
The investment is intended to support multiple areas of network development, including:
- Adding new 4G sites to improve coverage and network capacity.
- Expanding 5G services across circles where Vi holds the required spectrum.
- Upgrading core network infrastructure.
- Strengthening transmission capacity to support increasing mobile data traffic.
- Improving indoor coverage and the overall customer experience.
Vi has not disclosed a detailed technology-wise or circle-wise allocation of the Rs 13,200 crore order book in its Q2 results announcement. Therefore, the entire amount should not be interpreted as spending exclusively on 5G infrastructure.
Nearly 9,000 new broadband towers added in Q2
One of the most significant developments in Vi’s latest results is the pace of broadband network expansion.
The company added nearly 9,000 unique broadband towers during Q2 FY27, its highest quarterly addition in the last nine quarters. Its total unique broadband tower count increased to 213,616 at the end of September 2026, compared with 204,893 in the previous quarter.
Over the last 12 months, Vi added more than 22,500 new unique broadband towers.
| Network metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Unique broadband towers | 191,096 | 204,893 | 213,616 |
| 4G/5G subscribers | 127.8 million | 130.1 million | 131 million |
| Total subscribers | 196.7 million | 193.1 million | 194.4 million |
| Customer ARPU | Rs 180 | Rs 195 | Rs 198 |
The increase in broadband sites is relevant because additional sites can improve network capacity and coverage, particularly in locations where existing infrastructure is under pressure from rising data consumption.
Vi said its 4G population coverage reached almost 88% as of September 2026. It has extended 4G coverage to an additional 45 million people since Q2 FY26.
The company expects 4G population coverage in its 17 key circles to exceed 95% with its planned investments. This is a company target, not a coverage level already achieved across those circles.
Vi expands 5G coverage to 400 cities and towns
Alongside 4G expansion, Vi is continuing its 5G rollout.
The operator said its 5G services had expanded to 400 cities and towns across the 17 key telecom circles where it holds 5G spectrum.
This expansion is important as Vi attempts to compete with Reliance Jio and Bharti Airtel, both of which have already established wider 5G footprints in India.
Vi’s 5G rollout is supported by its mid-band spectrum portfolio across 17 circles and mmWave spectrum in 16 circles. However, the company’s latest results release does not provide a complete circle-wise list of newly covered cities or a breakdown of the number of 5G sites added during Q2.
The operator’s immediate network priorities also include strengthening 4G capacity. A larger 4G footprint remains important because a substantial part of its customer base continues to rely on 4G services, while 5G adoption and device availability vary across markets.
Can network investment help Vi retain subscribers?
Vi’s latest subscriber numbers suggest that its operating performance is showing signs of improvement.
The company’s total subscriber base increased to 194.4 million in Q2 FY27 from 193.1 million in Q1 FY27. Its 4G and 5G subscriber base also increased to 131 million from 130.1 million in the previous quarter.
Postpaid subscribers increased to 33.9 million from 31.9 million, marking the highest sequential postpaid addition in the last nine quarters, according to the company.
Vi’s customer ARPU increased to Rs 198 from Rs 195 in Q1 FY27 and Rs 180 in Q2 FY26. Average daily data usage rose to 93.6 petabytes from 73.6 petabytes a year earlier.
These figures indicate that Vi is attracting more usage from its network and has improved its subscriber position sequentially. However, its total subscriber base remains below the 196.7 million reported in Q2 FY26.
Network expansion can support subscriber retention in several ways. Better coverage can reduce connectivity gaps, additional capacity can improve service during busy hours, and stronger indoor coverage can make the network more usable in homes and offices.
It can also help Vi compete for new customers in areas where its network experience has historically been weaker than that of its rivals.
However, the latest results do not establish that capex alone caused the subscriber additions. Pricing, customer upgrades, postpaid offers and other commercial initiatives also influence subscriber behaviour.
Funding remains critical to Vi’s expansion plans
Vi’s ability to sustain its network investment programme will depend on funding availability.
The company said it had secured total funding of more than Rs 10,500 crore up to the first half of FY27, including warrants and fund-based and non-fund-based facilities. More than Rs 4,000 crore of incremental bank funding was arranged during Q2 FY27.
As of September 30, 2026, Vi reported bank debt of Rs 943 crore and cash and bank balances of Rs 5,470 crore in its media release.
The company said it was encouraged by progress in discussions to raise additional funding and was confident of placing further capex orders to maintain the network expansion momentum.
However, Vi continues to face substantial financial obligations. Its September-quarter filing reported deferred payment obligations of Rs 1,31,268 crore towards spectrum and Rs 26,264 crore towards adjusted gross revenue (AGR), including accrued interest.
This makes access to additional funding an important factor in determining how quickly Vi can execute its remaining investment plans.
What Vi’s network expansion means for its competition with Airtel and Jio
Vi’s investment programme is aimed at reducing the gap in network coverage and capacity with its larger competitors.
Airtel and Jio have already built extensive 4G networks and expanded their 5G services across the country. Vi therefore needs to improve both its existing 4G infrastructure and its 5G availability to remain competitive.
The operator’s addition of more than 22,500 broadband towers over the last year and its expansion of 5G services to 400 cities and towns show that network deployment is progressing.
But the real test will be whether these investments translate into measurable improvements in network experience, lower customer churn and sustained subscriber additions.
Vi’s Q2 FY27 results provide early signs of operational progress. Its capex spending has accelerated, its 4G and 5G subscriber base has increased, and its overall subscriber count has improved sequentially.
The next few quarters will show whether the Rs 13,200 crore capex order book and additional funding can support a broader network recovery. For Vi, expanding coverage is only the first step; converting that investment into a more reliable customer experience and a stronger subscriber base will be equally important.
