According to a senior Department of Telecommunications official, Vodafone Idea, the third-ranked telecommunications company in India, is expected to release its 5G network in June. The telecom operator has secured funding by partnering with banks, as reported by the New Indian Express.
According to the report, Vodafone Idea is in the final stages of discussing fundraising, and the conclusion may be reached in June. “I think Vodafone Idea’s discussion with the banks to raise funds is positive. The telecom service provider will announce its fundraising next month.
“I think Vodafone Idea’s discussion with the banks to raise funds is positive. The telecom service provider will announce its fundraising next month. As the company has maintained that it would start deploying a 5G network once funding is in place, I am expecting the company to start deploying 5G in June itself,” told a senior official of the Department of Telecommunication (DoT).
The official said that Vodafone Idea had paid its licence fee for the third quarter in full and also made a partial payment for the fourth quarter, as per the report.
The telecom service provider, burdened with debt, has been attempting to secure funding from the market for over two years but has been unsuccessful.
Reliance Jio and Bharti Airtel, the two of Vodafone Idea’s main competitors, have already begun deploying 5G services across the country from last year. The two have confirmed that their 5G deployments will be completed by the end of 2024.
According to the report, the central government made a decision in February to convert the interest dues of Rs 16,133 crore related to Vodafone Idea’s deferred adjusted gross revenue (AGR) and spectrum usage charge (SUC) into equity.
According to Telecom Secretary K Rajaraman, Vodafone Idea is anticipated to present its recovery strategy soon. He also expressed his approval of the Aditya Birla Group Chairman Kumar Mangalam Birla’s return to the company’s board as a positive development.