Vodafone Idea to reportedly launch 5G services; stock climbs over 12% in 5 sessions
Industry experts believes that Vi will launch initial 5G plans at a price lower than rivals by as much as 10-15 per cent, fuelling price war.
Amid reports of Vodafone Idea (Vi) prepping to launch 5G mobile broadband services in March, its stock has climbed a sharp over 12 per cent in just 5 sessions. Earlier on the sidelines of the launch of its Rs 18,000 crore follow on public offer last year, the comany's CEO Akshay Moondra anticipated the roll out of the company's 5G network in the next 6-9 months.
At the last count at around 2:05 pm, shares of Vodafone Idea were up 2.71 per cent or Rs 0.22 at Rs 8.35 per share.
The company will reportedly launch services with competitively priced plans, to win back market share from rivals including Bharti Airtel and Reliance Jio, already running a nationwide 5G network.
At first as per reports the company wil unveil 5G services in total 75 cities, which are part of its 17 priority circles, with a focus on tapping industrial hubs using high data. There is a view by industry experts that Vi's entry-level plans can likely be priced 10-15 per cent lower in comparison to Airtel's and Jio's offerings.
Atul Parakh, CEO of Bigul said, "This rollout is part of a strategic effort to reclaim market share from competitors like Reliance Jio and Bharti Airtel, which have already established their 5G networks nationwide."
The company's strategy includes not only lower prices but also enhanced service quality through significant infrastructure upgrades and technological innovations, he added.
Vodafone Idea technicals
Jigar S. Patel, Sr. Manager- Equity Research, Anand Rathi said, "
Vodafone Idea recently reversed from the key support near Rs 7 and is now trading close to Rs 8. This support level aligns with the market profile's point of control, indicating the highest activity between July 2023 and December 26, 2023."
Additionally, a bullish divergence on the daily chart suggests a potential upward move toward the Rs10- Rs 11 resistance zone. Thus, the Rs 7 level is expected to act as a strong support, while resistance is anticipated near Rs10. Traders may watch these levels closely for further price action cues, added the expert.
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