Government extension requested by Vi and Adani group for 5G rollout

Telecom companies must commercially introduce 5G services in both metro and non-metro circles in accordance with government regulations.

Vodafone Idea and Adani Data Networks have contacted the Department of Telecommunications (DoT) to ask for a delay in order to meet the deadline for launching 5G services according to a Financial Express article.

This rollout was initially scheduled to be completed by August 16. Even though Vodafone Idea's 5G rollout has been delayed owing to funding concerns, Adani Group is still working on putting a 5G network in place in the 26 GHz band for captive networks.

Without disclosing the names of the businesses requesting the extension, Telecom Secretary K Rajaraman confirmed the news to FE. The DoT is presently reviewing these demands, he said. Adani Group might have theoretically provided internet services in a particular location or utilised data networks to connect its ports or airports when it purchased spectrum worth Rs 212 crore in six circles.

Telecom companies must commercially introduce 5G services in both metro and non-metro circles in accordance with government regulations. Vodafone Idea is the only significant telecom provider in India that has not yet introduced 5G services. 36 test tower locations have been deployed by the business for its 5G experiments, which are now being conducted in Delhi and Pune. Once orders have been placed with equipment makers, commercial deployment will start.

Akshaya Moondra, CEO of Vodafone Idea, has stressed that although meeting the minimum rollout commitment is crucial, the firm is primarily concerned about achieving wider coverage. The delay in the rollout of 5G services has primarily been caused by financial restrictions.

The conversion of Vodafone Idea’s outstanding interest debt of Rs 16,133 crore into equity was given the government’s approval, in February this year.

Government rescue measures for debt-ridden telecom businesses were adopted in 2021, enabling them to convert interest on deferred adjusted gross revenue owed to the government into equity.

What the government does next will be intriguing to watch. Whether the government will impose penalties on the carriers or introduce a new strategy.