Vodafone Idea Completes Minimum Rollout Obligation In All 5G Circles
The Aditya Birla Group-backed telecom company has completed rollout on both the spectrum bands.
Vodafone Idea Ltd. has completed the minimum rollout obligation for all 5G circles, the telecom player said in a statement. The rollout has been completed on both spectrum bands.
It is mandatory for the telecom players to complete the minimum rollout before a specified date and according to the terms of the Department of Telecom. Failing to do so may lead to the cancellation of the 5G spectrum allotted to the company.
The third-largest telecom player has been losing customers as it was unable to launch the 5G network due to a paucity of capital. Its competitors, Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd., have already rolled out 5G but the technology is yet to be monetised, despite heavy capital expenditure by both telecom companies.
The Aditya Birla Group-backed telecom company has raised Rs 18,000 crore through a follow-on public offer. It has invested Rs 2,075 crore in this fundraise as well.
The company plans to use these funds towards coverage expansion and the rollout of 5G. A total of Rs 12,750 crore will be used for capital expenditure, and nearly Rs 2,175 crore is allocated towards spectrum payments.
It had also said in May that it was in discussions with a consortium of banks to raise up to Rs 25,000 crore and additional non-fund-based facilities of up to Rs 10,000 crore.
Shares of Vodafone Idea closed 3.45% higher on Friday, as compared with a loss of 0.28% on the benchmark Nifty 50.
