Vodafone Idea Ltd (Vi) said on Monday that it is ready for the launch of 5G wireless service, after rival Bharti Airtel Ltd recently announced that its network is ready for a commercial launch of the technology as soon as the government permits and the spectrum is available.
“We are rolling out teams that are 5G ready, both on the radio and at the core … The country’s 5G ecosystem is still nascent, but we are well prepared for 5G rollout as long as the ecosystem develops”, Ravinder Takkar Managing Director (MD) and Chief Executive Officer (CEO), Vi, said in a post-earnings call from investors.
The 3,300MHz to 3,600MHz spectrum bands intended for 5G are expensive, Takkar told analysts. Additionally, a lack of clarity about use cases and technology and an underdeveloped ecosystem could affect the launch.
Vi is in active discussions with potential investors for the proposed fundraiser of up to ₹25 billion rupees in debt and equity, Takkar said. The investor talks are “progressing well and we hope to conclude this (the fundraiser) soon,” he said. The telecommunications company is “very well engaged” with several potential investors, who have shown interest in the process, he said.
The cash-strapped telco had announced its fundraising plans in September 2020.
On November 19, Mint reported that a consortium led by United States-based Oaktree Capital, which included some other private equity firms such as Varde Partners, had proposed to invest up to $ 2.5 billion in Vi through hybrid debt securities. .
The consortium is said to have offered $ 2 to $ 2.5 billion of capital to the Birla group company, which faces tens of billions of rupees in government fees.
The company will not depend on other telecoms operators to increase rates, Takkar said.
Analysts said Vi could be the first in the industry to raise prices for voice and data services, as it did in December 2019. This is contrary to Airtel management’s stance not to take the lead in the price increase of various services.
Takkar said that the telecommunications company will participate in the next spectrum auction and has deposited a security deposit with the telecommunications department. However, Takkar did not share the auction strategy and acquisition plans of the telecommunications company given the “sensitivity” of the issue.
Vi continues to regroup its 3G spectrum to 4G and aims to shut down 3G service by the end of fiscal 2022, said Akshaya Moondra, Vi’s chief financial officer.
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