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Vodafone Concept struggles to finalize 5G offers, Telecom Information, ET Telecom

New Delhi: Vodafone thought is having hassle closing offers for 5G tools provides and tower rental with distributors asking the struggling telco to settle their 4G-related dues and pay advances for brand spanking new contracts, based on folks accustomed to the matter.

Vodafone Concept owes roughly Rs 3,000 crore to Finnish tools provider Nokia and as much as Rs 1,000 crore to Sweden Ericsson in 4G community associated prices. The telecom JV between the British Vodafone Group Plc. and India’s Aditya Birla Group (ABG) additionally owes about Rs 7,000 crore to tower firm Indus Towers and Rs 2,000 crore to American Tower Co. (ATC).

Inquiries despatched to Vi, ATC and Nokia yielded no response. Ericsson and Indus Towers declined to remark.

Vodafone Idea struggles to finalize 5G deals

The loss-making operator’s issues are slowing down its 5G launch plans, leaving it susceptible to additional subscriber losses to stronger rivals Belief Jio and Bharti Airtelsay specialists.

Vi has but to announce 5G launch plan

Bharti Airtel and Reliance Jio have already confirmed their plans to launch the primary business 5G providers by way of Diwali and talked about increasing providers throughout India in 18-24 months. Vi has not introduced such plans.

“Tools distributors have requested the telco to pay their 4G prices and have additionally requested for prepayments for the acquisition of 5G radio,” one of many folks instructed ET.

Likewise, tower firms are cautious due to the present rights. “They need readability (in regards to the settlement of previous dues) earlier than contemplating new leases for his or her towers for the telco’s 5G providers,” mentioned one other particular person.

“Vi can be not pushing too exhausting to shut the offers because it has not been in a position to shut financing preparations up to now,” mentioned one other director of a number one telecom supplier.

Not too long ago, Akshaya Moondra, Vodafone Concept’s new chief government officer, instructed shareholders that the telco’s 5G launch plans is not going to be finalized till after new financial institution loans have been drawn up and community tools procurement contracts have been signed.

The telco has been attempting to boost Rs 20,000 crore for a very long time, divided between extra lender debt and fairness, however has up to now failed to shut any offers. Commerce payables rose sequentially by almost 13.6% to Rs 14,956.2 crore within the June quarter of FY23. On the finish of June, Vi’s internet debt stood at over Rs 1.98 lakh crore, with deferred spectrum fee entitlements at over Rs 1.16 lakh crore and debt from banks and monetary establishments at Rs 15,200 crore. The money and money equivalents amounted to Rs 860 crore.

“Not like Jio and Airtel, Vi has been gradual to roll out 5G contracts to suppliers. Additionally, the sellers themselves have been fearful about Vi’s monetary issues,” Ashwinder Sethi, principal at Analysys Mason, instructed ET.

He added that gradual 5G rollout by Vi may result in additional shrinking of its buyer base, particularly the premium postpaid subscribers who might transfer to rivals to expertise 5G.

The telco’s consumer base shrank one other 1.54 million to 255.1 million in July, based on the trade regulator, because of the airline’s ongoing wrestle to compete on the bottom.

Within the latest spectrum auctions, Vodafone Concept purchased 6,228 MHz of ether throughout 1800 MHz, 2100 MHz, 2500 MHz, 3300 MHz and 26 GHz bands within the 16-17 precedence circles for Rs 18,799 crore.

Reliance Jio bought the best spectrum of 24,740 MHz throughout the 700 MHz, 800 MHz, 1800 MHz, 3300 MHz and 26 GHz bands, incomes Rs 88,078 crore. Second-ranked Airtel picked up 19,867 MHz spectrum throughout 900 MHz, 1800 MHz, 2100 MHz, 3300 MHz and 26 GHz bands for a complete sum of Rs 43,084 crore.

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