Vodafone Idea Hits 5G Milestone in Key Circles, Eyes Expansion Amid Fundraising Efforts

6 Mar 2024 , 11:09 AM

Vodafone Idea has successfully met its 5G minimum roll-out obligations in key circles, including Delhi, Chennai, Pune, and Punjab. In a recent telecom department meeting, Vi reiterated its commitment to fulfilling requirements in four to six additional circles in the coming months.

The 5G minimum obligations fulfillment is crucial for Vi, facing financial constraints and aiming to raise ₹45,000 Crore in equity and debt. Vi acquired spectrum in the 3300 MHz and 26 GHz 5G bands during the 2022 auctions, and meeting roll-out obligations is essential for retaining 5G licenses.

Telecom operators are required to launch commercial services in metro and non-metro circles within the first year of acquiring the 5G spectrum. Vi received a show cause notice in January for failing to meet minimum roll-out obligations, potentially facing fines of around ₹14 Crore.

Vi aims to go beyond minimum obligations, focusing on a comprehensive commercial network rollout, according to CEO Akshaya Moondra. Vi recently initiated live commercial data traffic on its Open RAN network, collaborating with Mavenir for the Open RAN network pilot deployment.

During the January 30 earnings call, Vi outlined plans to roll out 5G services within six to seven months, contingent on necessary funding. Vi is seeking to raise ₹45,000 Crore in equity and debt, with equity commitments from anchor investors exceeding $1 billion. At the time of writing, Vodafone Idea stock is trading at ₹14.05, reflecting a 2.09% decline from the previous session.

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