Vodafone Idea Stock Jumps After 5G Launch In Mumbai
Vodafone Idea's 5G introductory offer provides unlimited 5G data for plans starting at just Rs 299.
Vodafone Idea Ltd.'s share price jumped over 5% during early trade on Wednesday, after the wireless carrier launched 5G services in Mumbai. The stock also reacted to news that the company is exploring talks with satcom players to explore potential partnerships after rivals Airtel and Jio tied-up with Starlink.
The 5G introductory offer provides unlimited 5G data for plans starting at just Rs 299. "The service will enhance the user experience for activities such as watching videos and OTT apps, online gaming, video calls and conferencing, and downloads," a press release said.
"To ensure users get the best connectivity experience, Vi has partnered with Nokia, integrating the latest generation of equipment in its 5G rollout in the city," the statement said.
Vodafone Idea plans to spend Rs 50,000 crore to Rs 55,000 crore over three years towards expansion of its 4G network, in addition to launch of 5G services in key geographies.
The struggling telecom operator is "in conversation" with satcom players to explore potential partneships, a senior company official said, PTI reported. The telecom firm said that use cases for satellite communications would be in areas where traditional connectivity infrastructure, such as fibre optic cables or cell towers are lacking.
"We are in conversations with partners and will share an update at an appropriate time," Chief Technology Officer Jagbir Singh told PTI.
Vodafone Idea Share Price Up
Vodafone Idea share price advanced 5.2% intraday to Rs 7.47 apiece. The scrip was trading 4.5% higher by 11:00 a.m. The benchmark NSE Nifty 50 was up 0.28%.
The stock has fallen 43% in the last 12 months and 6.5% on a year-to-date basis. Total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 62.
Of the 21 analysts tracking Vodafone Idea, four have a 'buy' rating on the stock, five recommend a 'hold' and 12 suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target of Rs 8.28 implies a potential upside of 11%.
