Life of Vi: How India was able to avert a telco duopoly

But to capitalize on this potential, Vi needs capital. Large amounts of it. Vi has guided for ₹50,000-55,000 crore of capex in the near term, contingent on bank funding, which itself requires clarity on AGR.

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An immediate resolution would unlock ₹25,000 crore of pending bank debt, enabling partial network expansion. JPMorgan notes that Vi expects to close 2025-26 with ₹7,500-8,000 crore of capex even without major funding, but from 2026-27 onwards, new capital is indispensable.

IIFL's Balaji Subramanian is cautiously optimistic. “A meaningful AGR reduction, new capital investors, converting more vendor dues into equity and a tariff hike must all come together if Vi has to strengthen its market presence,” he argued.

But he warns that to demonstrate value to investors, Vi must increase its Arpu (average revenue per user) without losing subscribers and compete vigorously against two financially powerful rivals. “It is quite a tall order,” he admits.