In an attempt to tailwind its game, Vodafone Idea (Vi) is planning to increase its annual capital expenditure by four times to reach up to $ 2 billion (Rs.15,000 crore) alongside its competitors.

The telecom major is optimistic about its equity funding, including from its promoters, to be tied by March next year. It’s also a first for the company to have its promoters, UK’s Vodafone Plc and the Aditya Birla Group (ABG), who are likely to infuse equity while striving to close its long-term fundraise.

With existing $ 500 million, its plans of acing up its annual capital expenditure is a vital move to help nurse back its 4G operations across 17 priority markets.

For a while, the telecom major has been in talks with various private equity players like Apollo Global for equity as well as debt funding in efforts to boost its operations.

The telecom major underwent a devastating three year period struck with loss of customers as well as revenue share for every quarter, due to its inability to adequately invest in expanding its 4G network to be at par with its rivals on mobile broadband coverage.

On that same broadband-based prepaid tariff hikes, including reforms package, the storm seems to be clearing for the telecom major as analysts predict that the result would be that of Rs.1 lakh crore cash flow relief for over four years.

Its management is also expecting to clear redemption dues of non-convertible debentures on time. As is it has cleared Rs.1,500 crore tranche, but is required to pay additional Rs.4,500 crore towards NCD redemption for January - February next year.

Previously, CIO Insider reported that Vi had told the Department of Telecommunications (DoT) that it has agreed to a four-year delay in paying its spectrum dues. It was the first to inform the Department of Telecommunications (DoT) that it had accepted the government's telecom rejuvenation package, which includes deferring payment of spectrum installments while maintaining the NPV.

The board of Vi considered deferring payment of AGR dues for four years and offering equity to the government in place of interest, and confirming its acceptance within the prescribed time period.

Vi has plans of increasing its tower footprint to 200,000 sites starting from 180,000 now.

The telco, though, believes “meaningful 5G investment is still some time away, as there is still no strong use case”. Vi expects a further tariff hike as the industry is “still operating at a very low ROCE (return on capital employed)”.