Vodafone Idea had already installed live 5G clusters in Delhi and Pune
Indian operator Vodafone Idea is currently in advanced talks with telecom equipment vendors for its 5G rollout strategy and will comply with minimum 5G rollout obligations, the company’s CEO Akshaya Moondra said during a conference call with investors.
“We have live 5G clusters in Delhi and Pune where we have partnered with various OEMs to test compatibility of available 5G handsets. Further, we are in advanced stages of discussion with various network vendors for finalization of the rollout strategy,” Moondra said.
“Our effort will be that as soon as funding is in place, we will expedite our rollout to have a presence in the geographies which matter, particularly in the context of 5G, so that we are able to compete as early as possible,” he added.
The Indian authorities had set minimum 5G rollout obligations, effectively requiring local carriers to launch 5G services in licensed service areas in both metro and non-metro cities in the first year of spectrum acquisition. The government allocated 5G spectrum to all carriers in August 2022. The executive noted that the fulfillment of this minimum rollout will not require a large investment, adding that it will be fully complied with by the telco.
Last month, local press reported that India’s Department of Telecommunications (DoT) was keeping an eye out for Vodafone Idea’s 5G roll out plans to make sure the company meets its deployment obligations.
“Non-compliance [the minimum roll out obligations] attracts a financial penalty, and if there is a delay of service launch of more than 52 weeks, the spectrum assigned can even be taken back,” said a government official.
In the auction which ended on August 1, 2022 Vodafone Idea acquired 5G spectrum in the 3.3 GHz and 26 GHz 5G bands.
Earlier this month, it was confirmed that the Indian government has finally secured a 33% stake in Vodafone Idea, which has been struggling to pay off its debt of INR2.2 trillion ($26.6 billion) as of September 2022. Vodafone idea is controlled by Vodafone Group and Aditya Birla Group.
On September 15, 2021, the government had announced a package offering local providers the option to convert the interest of INR161.33 billion from deferred dues to equity. While the offer was extended to all service providers, it was chiefly aimed at saving Vodafone Idea from bankruptcy, according to previous reports.
According to local press reports, the government has been assured by Vodafone and Aditya Birla Group that they remain committed to the carrier, and will bring in the funds necessary to service its upcoming debt obligations, and finance the expansion of its 4G network infrastructure and its 5G deployment.
Rival operators Bharti Airtel and Reliance Jio Infocomm are rapidly deploying 5G infrastructure at a national level. Currently, Reliance Jio is rolling out 5G on 700 MHz and 3.3 GHz bands while Bharti Airtel is deploying 5G technology via the 3.3 GHz spectrum band. Jio is offering 5G services via Standalone (SA) architecture.
Meanwhile, state-run operator Bharat Sanchar Nigam Limited (BSNL) could launch 5G services by March 2024, according to recent press reports.
