According to reports, the Ministry of Telecommunications has sent show-cause notices to Vodafone Idea and Adani Data Networks, an Adani group company. According to a recent report in Financial Express, why Vodafone AHS should not impose fines on Vodafone Idea and Adani Group for not meeting minimum deployment obligations for fifth generation or 5G networks. A notice has been sent requesting an explanation.
Vodafone Idea could have to pay a fine of 14 billion rupees, while Adani Data Networks could face a fine of 5 to 6 million rupees, according to officials cited by the magazine. It is said that there is. According to reports, the communications department has also issued notices to both companies asking for the reason for the delay and the schedule for starting the service.
Under the first-year 5G minimum deployment mandate, carriers were required to commercially launch services in metropolitan areas as well as non-metropolitan cities.
why is there a penalty
Vodafone’s rivals Indian telcos Reliance Jio and Bharti Airtel began rolling out 5G networks in October 2022. However, both Vodafone Idea and Adani Data Networks are yet to launch 5G services.
Adani Data Networks has acquired 5G spectrum for deployment of private captive networks in ports, logistics, power generation, etc., among others, to meet data usage needs.
Vodafone Idea CEO Akshaya Moondra recently said that the company will not be able to meet its minimum deployment obligations in 15 of the 17 circles that acquired spectrum in the July 2022 5G spectrum auction. .
“Of the 17 circles for which we have acquired spectrum, we have already applied for compliance for two circles.For the remaining circles, as per the NIA (Notice of Call for Applicants), liquidated damages will be applied over a period of 26 weeks. is applicable.” It is in the order of Rs 12,000 crore to Rs 13,000,000 crore,” Moondra said.
According to sources cited in the report, Adani Data Networks has not yet found a way to deploy a 5G network in the 26GHz band, but Vodafone Idea’s 5G network launch Delays may be due to lack of funds.
While Reliance Jio claims to have completed its 5G rollout, Airtel hopes to complete it by March.
Vodafone Idea could have to pay a fine of 14 billion rupees, while Adani Data Networks could face a fine of 5 to 6 million rupees, according to officials cited by the magazine. It is said that there is. According to reports, the communications department has also issued notices to both companies asking for the reason for the delay and the schedule for starting the service.
Under the first-year 5G minimum deployment mandate, carriers were required to commercially launch services in metropolitan areas as well as non-metropolitan cities.
why is there a penalty
Vodafone’s rivals Indian telcos Reliance Jio and Bharti Airtel began rolling out 5G networks in October 2022. However, both Vodafone Idea and Adani Data Networks are yet to launch 5G services.
Adani Data Networks has acquired 5G spectrum for deployment of private captive networks in ports, logistics, power generation, etc., among others, to meet data usage needs.
Vodafone Idea CEO Akshaya Moondra recently said that the company will not be able to meet its minimum deployment obligations in 15 of the 17 circles that acquired spectrum in the July 2022 5G spectrum auction. .
“Of the 17 circles for which we have acquired spectrum, we have already applied for compliance for two circles.For the remaining circles, as per the NIA (Notice of Call for Applicants), liquidated damages will be applied over a period of 26 weeks. is applicable.” It is in the order of Rs 12,000 crore to Rs 13,000,000 crore,” Moondra said.
Expanding
While Reliance Jio claims to have completed its 5G rollout, Airtel hopes to complete it by March.