Vi CEO Akshaya Moondra has reportedly stated that upon the launch of its 5G services, the telecom company will have a clear monetization plan in place.
Vi (Vodafone Idea) has shared its plans to launch 5G services in India within six to seven months, as per a report. CEO Akshaya Moondra revealed that the telco is expecting to gain better clarity over the monetisation issue around the next-generation broadband spectrum and the company’s external fundraising situation before working on the rollout of the 5G network. Recently, Vi was served a show cause notice by the Department of Telecommunication (DoT) for failing to meet the minimum rollout obligations of the 5G spectrum.
According to a report by Financial Express, Moondra spoke about the 5G rollout plans during the company’s quarterly earnings call for October – December. He highlighted that currently, there is no monetisation around 5G in the country. This was aimed at Reliance Jio and Bharti Airtel, both of which have rolled out 5G services in multiple circles but have not introduced any specific 5G tariff plans for the service yet. Vi is aiming to get a monetisation plan by the time it launches the spectrum.
He also said that the company’s external fundraising is going to be a factor in rolling out the service. However, no details about it were provided, as per the report. Various sources have previously mentioned that the cash-strapped telecom operator has been trying to raise funds for some time now. “After funding plans materialise, we will need around 6-7 months to rollout 5G, and…by then monetisation will be clearer than it is today. Our strategy will be based on that,” Moondra added.
In addition, Vi has reportedly fallen short of meeting the minimum rollout obligations set by the Department of Telecommunications (DoT) following the 5G spectrum auction. The obligation required the commercial launch of 5G services in at least one metro and one non-metro circle within one year of spectrum distribution, which took place in July 2022. A recent report from Financial Express has indicated that the regulatory agency has issued a show-cause notice to the telecom operator and may impose fines.
While Vi claimed in August 2023 that it had met the minimum investment requirements in two out of its 17 circles, the commercial launch of 5G services is yet to materialize.