How Does VI Company Work?

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How is Vi navigating India’s telecom comeback?

In 2024–2025 Vi completed an Rs 18,000 crore FPO and secured over Rs 24,000 crore in bank funding to accelerate 4G densification and 5G rollout, aiming to stabilise ARPU and stem subscriber losses in a higher-tariff market.

Vi serves about 210–215 million mobile subscribers with nationwide 4G and early 5G in priority circles, offering prepaid/postpaid plans, enterprise IoT, and content bundles via partnerships, focusing on deleveraging and ARPU recovery.

How does Vi create value, earn revenue and compete? Read the concise competitive framework: VI Porter's Five Forces Analysis

Vi Company centers on providing reliable, affordable mobility and broadband across India’s mass market, complemented by enterprise connectivity and IoT; its network and retail footprint target scale, low churn and ARPU uplift through bundled services and focused 4G capacity growth.

Network footprint

Operates approximately 180,000–190,000 sites with over 400,000 broadband 3G/4G sectors; capex prioritizes 4G capacity in high-usage circles like Maharashtra, Gujarat, Delhi and Karnataka.

Spectrum & capacity

Holds multi-band spectrum (900/1800/2100/2300/2500 MHz) and is refarming 3G spectrum to 4G while deploying Massive MIMO on crowded cells to raise speeds and reduce churn.

Backhaul & sharing

Invested in fiber backhaul upgrades and leverages active infrastructure sharing with Indus Towers and other IP-1 providers to cut capex and accelerate rollouts.

Distribution model

Hybrid channel: over 300,000 retail touchpoints, digital onboarding via Vi App and direct enterprise sales, enabling broad reach and prepaid-first funnel efficiency.

Vi’s value proposition combines mass-market affordability with enterprise-grade services and analytics-led operations to drive ARPU and reduce costs.

Operational enablers & enterprise offer

Key enablers and commercial products target both consumer scale and business revenue streams.

• Analytics-driven network investment: usage heatmaps, offload strategies and targeted capex to improve ROI.
• Cost-out programs across energy, passive infra and IT outsourcing to protect margins.
• Partnerships with OTT, device OEMs, fintech wallets and SMB platforms to create differentiated bundles and lift ARPU; see Growth Strategy of VI.
• Vi Business offers MPLS/SD-WAN, CPaaS, M2M/IoT SIMs and managed security with unified service desk and SLAs for MSMEs and select large accounts.

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Revenue Streams and Monetization Strategies for VI Company centre on mobility services, data monetization, enterprise solutions, digital value-added services and smaller infra/interconnect receipts; tariff actions and upselling 4G/5G have driven ARPU gains and are the primary levers for funding capex and deleveraging.

Mobility Services (Prepaid & Postpaid)

Core revenue source at roughly 85–90% of total revenue, with prepaid making up ~90% of subscribers while postpaid yields higher ARPU.

ARPU Progression

ARPU improved from Rs 135 in FY23 to ~Rs 145–152 in FY24 and reached ~Rs 160–170 by H1 FY26 after industry tariff rounds in mid-2024 and 2025.

Data Monetization

4G packs, unlimited voice bundles and add-ons drive data revenue; 4G users now exceed 130–140 million and per-user data usage surpassed 16–18 GB/month in 2025.

Enterprise (Vi Business)

Contributes about 8–12% of revenue via leased lines, SIP/PRI, SD-WAN, IoT/M2M and cloud comms; IoT SIM base in the low tens of millions with double-digit sectoral growth.

Digital Value‑Added Services

Includes OTT bundles, caller tunes, gaming and device protection; single-digit revenue share but higher margin and effective for ARPU uplift and churn reduction.

Infrastructure & Interconnect

Smaller contributor: inbound roaming, enterprise infra leasing and remaining interconnect settlements after domestic IUC reductions.

Monetization levers combine tariff actions, bundling, segmentation and regional mix tilt toward high-ARPU circles (Mumbai, Delhi, Maharashtra, Gujarat, Karnataka, Tamil Nadu), with a medium-term ARPU target above Rs 200 to support capex and debt servicing.

Key Revenue Drivers & Tactics

How VI Company works to drive revenue and monetize services using targeted plays and product design:

• Tariff hikes in 2021, 2022, 2024 and 2025 raised industry pricing power and lifted ARPU.
• Bundled plans and family postpaid increase wallet share and reduce churn.
• Segmented offers via the Vi App enable personalized upsell to 4G/VoLTE and content bundles.
• Enterprise push (SD‑WAN, IoT, cloud) diversifies revenue and delivers higher average contract values.

Further reading on market positioning and competition: Competitors Landscape of VI

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Key milestones, strategic moves, and competitive edge map Vi Company's transformation from the 2018 merger to 2025, highlighting balance-sheet actions, network revival, enterprise expansion, and the executional focus required to regain market share.

Major corporate milestones

2018 merger created Vi to capture scale synergies; 2020–2023 saw AGR verdict impacts, moratoriums and network integration; brand unified as Vi to streamline market positioning.

Capital and balance-sheet moves

2024 FPO raised Rs 18,000 crore, plus ~Rs 24,000+ crore in additional debt facilities; gross debt remained elevated at >Rs 2.1–2.2 lakh crore including government dues.

Network and technology strategy

Post-2024 capex restart prioritized 4G densification and initial 5G rollout, fiberized backhaul and RAN upgrades with vendors such as Nokia and Ericsson to lift QoS and ARPU.

Enterprise & product expansion

Growth in SD-WAN, IoT, CPaaS and sectoral solutions (auto telematics, smart meters) leveraged deep enterprise relationships and expanded B2B revenue streams.

Execution priorities and market context drive the next phase: recover subscribers, improve ARPU and EBITDA via tariff moves, and translate spectrum and distribution advantages into network-led share gains.

Strategic actions & competitive edge

Key strategic moves combine capital raises, vendor re-engagement and targeted circle investments to address multi-year subscriber losses and capex gaps.

• Pan-India spectrum footprint underpins capacity and competitive 5G potential.
• Large prepaid distribution and retail reach sustain market presence and churn management.
• Enterprise focus (SD-WAN, IoT, CPaaS) diversifies revenue and raises ARPU per enterprise customer.
• Cost optimization, prioritized capex and vendor partnerships aim to restore network quality and EBITDA.

For context on Vi’s purpose and values see Mission, Vision & Core Values of VI which complements this operational and financial overview.

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Vi operates in a concentrated three-player telecom market where, as of 2025, its subscriber share is approximately 16–17% and revenue market share about 15–16%, trailing the two larger rivals whose combined share exceeds 80%. Recent tariff hikes in 2024–2025 raised ARPU and moderated churn, but network perception and 5G coverage gaps remain material constraints.

Industry Position

Vi holds a mid-tier position in a highly consolidated market; ARPU uplift and selective 5G densification have improved customer loyalty in priority circles, producing localized NPS gains and fewer port-outs.

Competitive Landscape

Jio and Airtel lead on scale, spectrum and device/OTT tie-ins; Vi competes on targeted network upgrades, pricing resets and enterprise services to regain share and monetization.

Key Risks

Execution risk on 5G rollout and capacity upgrades, elevated interest burden and refinancing needs, and legacy regulatory/AGR exposures are primary financial and operational threats.

Supply Chain & Partnerships

Dependence on radios, fiber supplies and tower tenancy agreements (for example with major towercos) creates project timing and cost risks that can affect network KPI delivery.

Management targets multi-year ARPU expansion toward Rs 200+, aims to roll out 5G across priority circles in FY26–FY27, and prioritizes enterprise revenue streams (IoT, SD‑WAN) while planning annual capex near Rs 10,000–12,000 crore.

Outlook & Strategic Priorities

If funding and execution align, Vi expects to stabilize market share and expand EBITDA through higher tariffs, richer bundles and enterprise solutions, enabling gradual deleveraging.

• Accelerate capex to strengthen 4G/5G coverage and fiber backhaul
• Focus on digital channels to improve upsell efficiency and reduce opex
• Drive enterprise adoption via IoT, SD‑WAN and managed services
• Manage refinancing and interest costs to preserve cash flow and credit metrics

For background on the company trajectory and milestones see Brief History of VI

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