Vi meets 5G rollout obligations in 4 circles, eyes another 4 soon

Vodafone Idea has reportedly met its 5G minimum roll-out obligations in four key circles, including Delhi, Chennai, Pune, and Punjab, according to sources familiar with the matter as reported by Moneycontrol.

During a recent meeting held by the telecom department to discuss these obligations, Vodafone Idea (Vi) reiterated its commitment to fulfilling requirements in four to six additional circles in the upcoming months, sources revealed.

For Vi, fulfilling these 5G roll-out obligations is a significant achievement, especially considering the financial challenges it has been facing. The company is currently in discussions with investors to raise up to Rs 45,000 crore through equity and debt.

Having acquired spectrum in the 3300 MHz and 26 GHz 5G bands during the 2022 auctions, meeting these roll-out obligations is crucial for Vi to retain its 5G licenses.

According to telecom regulations, operators must commercially launch services in both metro and non-metro circles within the first year of acquiring 5G spectrum. Failure to comply can result in penalties, as highlighted by the recent show cause notice issued by the Department of Telecommunications, with Vi facing potential fines of approximately Rs 14 crore.

Vi’s CEO, Akshaya Moondra, previously emphasized the company’s commitment to not only meeting minimum roll-out obligations but also deploying a commercial network beyond these obligations.

Recently, Vi announced the initiation of live commercial data traffic on its Open RAN network, indicating progress towards wider deployment of its 5G network. Collaborating with Mavenir, a US-based telecom gear maker, Vi commenced the commercial phase of the Open RAN network pilot deployment in Punjab’s Jalandhar.

During its earnings call on January 30, Vodafone Idea outlined plans to roll out 5G services within six to seven months after securing necessary funding.

As per reports, Vi aims to raise Rs 45,000 crore in equity and debt, with commitments from anchor investors exceeding $1 billion (Rs 8,200 crore).

On March 6, Vodafone Idea’s stock was trading at Rs 13.95, registering a 2.79 percent decrease from the previous session. News.Legalparivar