The Department of Telecommunications has reportedly sent show cause notices to Vodafone Idea and Adani Group company, Adani Data Networks. According to a recent report in Financial Express, Vodafone ahs sent notice to Vodafone Idea and Adani Group seeking an explanation as to why fines should not levied on them for failing to meet the minimum rollout obligations for fifth-generation or 5G networks.
Vodafone Idea may have to pay Rs 14 crore in fines, while Adani Data Networks may be levied with Rs 5-6 crore fine, according to the officials cited by the publication. As per the report, the telecom department has also issued notices to both the companies to seek the reasons for the delay and the timelines by which they will be launching services.
As per the year-one 5G minimum rollout obligations, telcos had to commercially launch services in metro as well as non-metro cities.
Why the penalty
Vodafone’s rival Indian telecom companies Reliance Jio and Bharti Airtel started rolling out their 5G networks in October 2022. However, both Vodafone-Idea and Adani Data Networks are yet to launch 5G services.
Adani Data Networks acquired 5G spectrum for private captive network deployment in ports, logistics, and power generation among others, to cater to data usage needs.
Vodafone-Idea CEO Akshaya Moondra recently said the company will miss the minimum rollout obligations in 15 out of the 17 circles it acquired spectrum in during the July 2022 5G spectrum auction.
“Of the 17 circles we have acquired spectrum, for 2 circles we have already filed for compliance. In the remaining circles, as per the NIA (notice inviting applications) there are liquidated damages that are applicable which over a period of 26 weeks is of the order of Rs 12-13 crore,” Moondra had said.
As per sources cited by the report, Adani Data Networks is yet to figure out how to deploy a 5G network in the 26GHz band, while the delay in Vodafone-Idea’s 5G network launch could be attributed to the absence of funding.
Reliance Jio claims to have completed 5G rollout, whereas Airtel hopes to complete it by March.
Vodafone Idea may have to pay Rs 14 crore in fines, while Adani Data Networks may be levied with Rs 5-6 crore fine, according to the officials cited by the publication. As per the report, the telecom department has also issued notices to both the companies to seek the reasons for the delay and the timelines by which they will be launching services.
As per the year-one 5G minimum rollout obligations, telcos had to commercially launch services in metro as well as non-metro cities.
Why the penalty
Vodafone’s rival Indian telecom companies Reliance Jio and Bharti Airtel started rolling out their 5G networks in October 2022. However, both Vodafone-Idea and Adani Data Networks are yet to launch 5G services.
Adani Data Networks acquired 5G spectrum for private captive network deployment in ports, logistics, and power generation among others, to cater to data usage needs.
Vodafone-Idea CEO Akshaya Moondra recently said the company will miss the minimum rollout obligations in 15 out of the 17 circles it acquired spectrum in during the July 2022 5G spectrum auction.
“Of the 17 circles we have acquired spectrum, for 2 circles we have already filed for compliance. In the remaining circles, as per the NIA (notice inviting applications) there are liquidated damages that are applicable which over a period of 26 weeks is of the order of Rs 12-13 crore,” Moondra had said.
As per sources cited by the report, Adani Data Networks is yet to figure out how to deploy a 5G network in the 26GHz band, while the delay in Vodafone-Idea’s 5G network launch could be attributed to the absence of funding.
Reliance Jio claims to have completed 5G rollout, whereas Airtel hopes to complete it by March.
Denial of responsibility! Swift Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – swifttelecast.com. The content will be deleted within 24 hours.