Kumar Mangalam Birla, Chairman Vodafone Idea (file photo)
| Photo Credit:
Johan Sathyadas J
India’s telecom sector requires periodic tariff revision for long term survival, as per Vodafone Idea (Vi) Chairman Kumar Mangalam Birla during the annual general meeting.
“India’s ARPU remains among the lowest globally, making periodic tariff rationalisation essential to ensure the industry’s long-term sustainability and ability to earn reasonable returns on capital. Continued investments in network expansion and next-generation technologies require a financially healthy telecom ecosystem. A sustainable industry is in the interest of customers, operators and the broader digital economy,” said Birla, speaking at the AGM for the first time since resuming chairmanship. The support for revised tariffs comes at a time when both the leading industry players retain their base plans while adjusting popular packages and offers.
In terms of Vi’s growth strategy, Birla called FY27 as the year of execution and delivery for Vi having addressed “legacy challenges, restoring financial flexibility, investing in network infrastructure and rebuilding momentum in the business.” Accordingly, the focus shifts to disciplined execution, operational excellence and translating these investments into sustainable growth and long-term value creation for all stakeholders.
Further, it will focus on four broad pillars: connectivity, IoT, emerging businesses such as cloud, security, and a wholesale business including messaging. Particular to the IoT side, Birla mentioned use-cases like connected cars, meters reading, vehicle tracking system, etc.
“We are actually the leaders in the connected cars ecosystem and we continue to work to strengthen our position in the other such emerging settings,” he said.
Regarding shareholder queries on market competition, Birla said, “This is a large industry and there’s space for all of us. Vi is a third player in buckets of leadership in some circles. With the investments we are making and in enabling strengthening of network I am confident that there are opportunities for the company to grow in the market.”
The Aditya Birla Group has committed to infusing ₹4,730 crore through warrants in May 2026, of which ₹1,183 crore was received in June 2026. As of August 2026, Vi secured around ₹6,400 crore funding, including both fund-based and non-fund-based facilities as well as upfront proceeds from the warrants issued. Vi has placed capex orders worth ₹9,000 crore to maintain capex intensity.
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