Adani Data Networks and Vodafone Idea are likely to have persuaded the Department of Telecommunications (DOT) to extend the August 16 deadline for satisfying the minimum rollout obligations for the introduction of fifth-generation or 5G services.
Vodafone Idea has been struggling to raise financing for the distribution of its 5G services, despite rivals Reliance Jio and Bharti Ailtel being on a 5G rollout binge and aiming to complete deployments within a year.
Adani Group, on the other hand, is yet to find out how to construct a 5G network in the millimeter-wave (26GHz) band for captive networks, according to the report.
Telecom Secretary K Rajaraman stated that they are currently reviewing requests from companies for an extension of the minimum rollout obligation of 5G, without providing further details.
According to Vodafone Idea’s latest annual report for FY 23, the company has established specific 5G clusters in Delhi and Pune.
In collaboration with various original equipment manufacturers (OEMs), they have conducted tests to assess the compatibility of available 5G handsets. Additionally, Vodafone Idea has successfully completed device testing for all major OEMs on its 5G network.
In a research note published Tuesday, New York-based brokerage firm BoFA Securities stated that the quick rollout of Jio and Airtel’s 5G networks could exacerbate churn in Vodafone Idea’s postpaid base, luring the third-ranked telco’s high-end subscribers to shift to rivals.
In recent years, both Bharti and Jio have managed to gain market shares, primarily at the expense of Vodafone Idea Limited. Looking ahead, it is anticipated that VIL’s loss of market share will become even more evident, especially as the discrepancy in 5G coverage between the competitors becomes apparent.
BoFA suggests that VIL’s high-end postpaid users could be the target of its rivals. Although there hasn’t been significant churn among these users so far, the varying 5G coverage among telcos might entice them to consider migrating to other providers.
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