Vodafone Idea has successfully fulfilled its 5G minimum roll-out obligations in four key circles of Delhi, Chennai, Pune, and Punjab, sources have told Moneycontrol.
In a recent meeting convened by the telecom department to discuss the obligations, Vodafone Idea (Vi) reaffirmed its commitment to meeting the requirements in four to six more circles in the coming months, sources said.
The rollout of 5G minimum obligations marks a significant step for Vi, which has been grappling with financial constraints and is in talks with investors to raise up to Rs 45,000 crore in equity and debt.
The company had acquired spectrum in the 3300 MHz and 26 GHz 5G bands during the 2022 auctions and fulfilling the roll-out obligations is crucial to retaining its 5G licences.
Telecom operators have to launch services commercially in both metro and non-metro circles within the first year of acquiring 5G spectrum. This entails making services available in at least one area within a circle, with a similar provision applicable to non-metro cities.
In January, the department of telecommunications' issued a show cause notice to the company over its failure to meet minimum roll-out obligations and may face fines amounting to approximately Rs 14 crore as a result. Likewise, Adani Data Networks, another recipient of the notice, could face a penalty of around Rs 6 crore.
In August 2023, Vi said it made investments in two out of 17 circles to meet the minimum rollout obligation and intended to roll out a 5 G commercial network beyond the minimum obligation circles.
“Our intent is to not look at only doing minimum rollout obligation but we would want to roll out a commercial network. Vodafone Idea CEO Akshaya Moondra had said.
Vi recently announced the commencement of live commercial data traffic on its Open RAN network, signalling progress towards larger-scale deployment of its 5G network. The telco is collaborating with Mavenir, a US-based telecom gear maker, for the commercial phase of the Open RAN network pilot deployment, which was initiated in September 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 following the procurement of necessary funding.
As reported by Moneycontrol, Vi is looking to raise Rs 45,000 crore in equity and debt, having secured equity commitments from anchor investors exceeding $1 billion (Rs 8200 crore).
On March 5, the Vodafone Idea stock closed at Rs 14.19, up 0.99 percent from the previous session.
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