An official from the Department of Telecom said Vodafone Idea could potentially launch 5G in June
Indian carrier Vodafone Idea is in the final stage of negotiations with banks to secure funding, which will be key for the launch of its 5G network infrastructure in the country, local newspaper The New Indian Express reported.
The newspaper cited a senior official from the Department of Telecommunication (DoT), who explained that the carrier is likely to secure funding by June, which will enable the launch of 5G services that same month.
The official also said that Vodafone Idea’s entry into the domestic 5G market will prevent a duopoly, which would be positive for consumers.
Another press report said that Finnish vendor Nokia was in talks with Vodafone Idea to supply 5G networking equipment. Nokia already supplies 5G gear to rival operators Bharti Airtel and Reliance Jio Infocomm.
Local research firm GlobalData had previously posited that Vodafone Idea’s inability to raise the necessary funds to deploy 5G infrastructure could lead to a duopoly between local telcos Bharti Airtel and Reliance Jio Infocomm.
According to the report, Vodafone Idea was facing challenges in rolling out 5G services because the telco had difficulties in securing funding for investing in 5G equipment and infrastructure.
Shri Charan Padala, principal analyst in the thematic intelligence team at GlobalData, had said: “Vodafone Idea is struggling to attract external investors, and the company has cited delays in converting dues to equity as one of the reasons. The company owed over $7 billion adjusted gross revenue related dues to the Indian government, which have now been converted to equity. … The company’s brand perception and customer loyalty have been impacted as customers in India prioritize reliability and efficiency when selecting a telecom operator.”
In February, Vodafone Idea’s CEO Akshaya Moondra had said that the telco was in advanced talks with telecom equipment vendors for its 5G rollout strategy.
“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 had 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.
Currently, both Bharti Airtel and Reliance Jio Infocomm offer 5G networks in all major cities across the country. While Jio is offering standalone 5G technology (SA), Airtel has opted for non-standalone 5G technology (NSA). It is yet unclear whether Vodafone Idea will opt for SA or NSA architecture.
