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Vodafone Idea (Vi) Friday said it has completed minimum rollout obligations for commencing 5G services in its 17 circles, for which the company had acquired spectrum in August, 2022.
The companies buying spectrum in an auction need to roll out network and offer services to a certain level to meet the minimum standards.
Vi’s bigger rivals Reliance Jio and Bharti Airtel has far exceeded the minimum requirements as both the telcos have almost completed their pan-India 5G rollout. But loss-making Vi is yet to announce its 5G roll out plans, due its strained cash position.
“Vodafone Idea has completed its Minimum Rollout Obligation (MRO) across all Vi 5G circles on both spectrum bands,” Vi said in a statement.
The company had bought mid band 5G spectrum (3300 MHz band) in its 17 priority circles and mmWave 5G spectrum (26 GHz band) in 16 circles.
The roll out obligations for both the 26 GHz band and the mid-band are similar for the first year. This means that by the end of first year or phase 1, a company has to commercially launch service anywhere in each of the three metros and at least in one city in each of India’s 22 telecom circles.
While the company has met the minimum requirements, a full fledged rollout will commence in the coming months.
The firm is likely to shortly place orders for network equipment to its vendors – Finland’s Nokia and Sweden’s Ericsson – to expand 4G and commence 5G.
The telco, which has completed a Rs 18,000 crore follow-on public offer (FPO), will utilise nearly Rs 13,000 crore for capex.
Apart from the FPO, the loss-making operator is looking to get another Rs 25,000 crore through debt.
In addition, the company has already approved raising Rs 2,075 crore from a promoter entity through a preferential share issue.
The company plans to reach 40% of revenue coverage in 24-30 months, with the rollout likely to commence in the coming months.
The company is expected to offer 5G in the non-standalone (NSA) mode as investments are lower than in standalone (SA) networks.
Bharti Airtel has rolled out 5G through the NSA mode while Jio use the SA mode. In NSA, the 4G layer is utilised for 5G services. In the SA mode, a completely new network is established. Apart from the European vendors, Vodafone Idea is also conducting trials with open RAN suppliers such as Mavenir in some circles like Punjab.
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