Indian telecommunications company, Vodafone Idea, has reportedly met the minimum requirements needed to roll out its 5G network, as specified in its spectrum licenses. However, the exact timeline indicating when the service will be fully launched is still uncertain.
According to ET Telecom, Vodafone Idea announced on Friday that it had fulfilled the minimum rollout obligation for the two 5G frequency bands it acquired in the government's spectrum auction in August 2022—3300 MHz in 17 priority circles and 26 GHz in 16 circles.
The licenses for both bands mandate the owner to commercially launch services in at least one city in each of India's three metros and in each telecom circle covered under the license by the end of the first year or "phase 1."
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Vodafone Idea's plans for a complete commercial launch of 5G have transformed. Initially, the company stated in January that it aimed to launch 5G services in July or August of the same year. However, just before its USD 2.2 billion follow-on public offer (FPO) in April, the telco mentioned that it intended to launch 5G "six to nine months" after the FPO, indicating a more likely year-end launch.
Facing financial challenges, Vodafone Idea has been actively raising funds this year. In addition to the FPO, the company has also offered around USD 645.5 million in shares to anchor investors and proposed a preferential issue of up to USD 293.2 million in equity shares to the local units of telecom equipment suppliers, Nokia and Ericsson.
Read More: Vodafone Idea Eyes 5G Rollout After FPO
The majority of the newly raised funds are expected to support the telco's 4G expansion and 5G rollout. However, Vodafone Idea is burdened with almost USD 3 billion in debt and needs sufficient cash to cover its spectrum and AGR payments due in the 2026 financial year and beyond.
Meanwhile, India's upcoming 5G spectrum auction, which has been postponed twice from its original date of May 20, is scheduled for tomorrow (June, 26).
Related: India Delays 5G Spectrum Auction Once Again
Vodafone Idea has applied to participate but previous reports suggested that the telco may focus on renewing licenses for bands it already holds rather than acquiring new spectrum.
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