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Vodafone Idea to Launch 5G Network in June, Secures Funding Through Bank Partnerships

Highlights

  • Vodafone Idea set to launch 5G network in June, becoming India’s third-largest telecoms carrier to do so
  • Fundraising discussions in final stages as Vodafone Idea secures partnerships with banks for funding
  • Deployment of 5G network expected in June following the resolution of fundraising plans

According to a top Department of Telecoms Official, Vodafone Idea, India’s third-largest telecoms carrier, plans to launch its 5G network in June. The company has successfully secured funding through partnerships with banks, as reported by the New Indian Express.

Fundraising Discussions in Final Stages

With a resolution anticipated in June, Vodafone Idea is currently in the closing phases of its fundraising conversations. The telecom operator has been engaged in positive talks with banks and is likely to make an official announcement regarding its fundraising plans next month. The company has consistently stated that it will begin deploying its 5G network once funding is in place, leading to expectations of a June deployment.

In a positive development, Vodafone Idea has paid its license fee in full for the third quarter and made a partial payment for the fourth quarter. This indicates the company’s commitment to meeting its financial obligations despite its heavy debt burden.

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Vodafone Idea’s main competitors, Reliance Jio and Bharti Airtel, have already commenced the deployment of their 5G services across India since last year. Both companies have confirmed their plans to complete their 5G deployments by the end of 2024, putting Vodafone Idea at a potential disadvantage in the race to capture the emerging 5G market.

Government Support and Recovery Strategy

In a significant move, the central government decided in February to convert Vodafone Idea’s interest dues of Rs 16,133 crore related to deferred adjusted gross revenue (AGR) and spectrum usage charge (SUC) into equity. This decision reflects the government’s commitment to supporting the troubled telecom operator.

Read Also: Vi (Vodafone Idea) validity recharge plans and offers (May 2023)

Telecom Secretary K Rajaraman expects Vodafone Idea to present its recovery strategy soon. He also expresses his support for Aditya Birla Group Chairman Kumar Mangalam Birla’s return to the company’s board of directors as a positive move. These leadership changes and recovery plans are crucial for Vodafone Idea’s future prospects.

With the impending launch of its 5G network in June and the securing of funding through bank partnerships, Vodafone Idea aims to compete in the evolving Indian telecom market. The successful deployment of 5G services will be crucial for the company’s efforts to regain market share and strengthen its financial position.

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