Vodafone Idea commits ₹45,000 crore capex after the government froze its AGR dues

Vodafone Idea (Vi), long squeezed by Reliance Jio and Bharti Airtel, said on 28 January 2026 that it would invest ₹45,000 crore in capital expenditure over three years, on top of ₹18,000 crore invested in the previous six quarters, more than ₹60,000 crore over about four and a half years. CEO Abhijit Kishore said the game was now to move from "survival and suspicion" to strength.

The trigger was regulatory relief earlier that month: the government froze Vi's adjusted gross revenue (AGR) dues at ₹87,695 crore for ten years and agreed to reassess the total liabilities. Kishore called it a "definitive, conclusive long-term solution", and Aditya Birla Group chairperson Kumar Mangalam Birla said the fog had cleared for the first time in years.

The plan concentrates on the 17 circles that produce 99.2% of Vi's revenue, targeting full 4G parity with Jio and Airtel in 12 to 24 months and a 5G rollout across all urban areas in 12 to 30 months. It also converts remaining 2G sites to 4G in select markets, explores fixed wireless access, and in-sources network operations with AI-led cost controls. Funding is ₹25,000 crore of bank debt and ₹10,000 crore of non-funded facilities, with no immediate equity infusion from Vodafone Plc or the Aditya Birla Group.

Kishore said earlier investment was already working: annual subscriber losses fell from 15-16 million to 5.3 million in recent quarters, and revenue in priority circles grew 9-14% versus 3% nationally. He set a target of double-digit revenue growth and three times the EBITDA within three years, which he called "pretty ambitious".

Annual subscriber losses cut from 15-16 million to 5.3 million; 9-14% revenue growth in priority circles versus 3% nationally; targets triple EBITDA in 3 years.

The AGR freeze capped the biggest liability hanging over the company, making new borrowing and investment feasible.

Network quality was driving subscriber losses, so spending was aimed at parity with Jio and Airtel in the circles that earn nearly all revenue.

Retention was prioritised over aggressive market-share gains, with better network experience drawing migrations from competitors.

Funding was kept to bank debt and a conservative debt-to-EBITDA ratio rather than new promoter equity.

Once a survival risk is capped, a distressed company can pivot from surviving to investing, and should concentrate that spending where most of its revenue sits.

The article covers only the announcement and early indicators; the three-year EBITDA and revenue targets are management goals, not results. Kishore said acquisitions from competitors had risen from 19-20% of Vi's gross adds four or five quarters earlier to 43% in the latest quarter.