Vodafone Idea, Adani Data Networks may not get relaxations for 5G rollout

According to rules, a telco has to commercially launch service anywhere in each of the three metros and at least in one city in each of India's 22 telecom circles at the end of the first year

Adani Data Networks and Vodafone Idea (Vi) might not get any exemptions or extensions to meet the minimum rollout obligations related to 5G airwaves in 3,300-3,600 MHz and 26 GHz bands, The Economic Times (ET) reported on Wednesday. Both telcos may need to pay financial penalties for the circles if they don't meet the requirements.

The two companies had sought exemptions from the Department of Telecom. However, according to the report, the department believes that the conditions were specified in the application and need to be complied with.

According to the obligations, a company has to commercially launch service anywhere in each of the three metros and at least in one city in each of India's 22 telecom circles at the end of the first year.

As per the rules, the Centre can impose a penalty of Rs 1 lakh per week for the first 13 weeks if the rollout is delayed.

Airwaves were allotted by the middle of August last year, and the deadlines are to be met by the end of the first year. According to the notice inviting applications (NIAs), "No extension to prescribed due date will be granted".

According to industry experts, no such extension has ever been given by the DoT. The ET report, however, said that DoT is still checking if there was any precedence of granting such extensions or exemptions.

The report also said that the situation might be more difficult for Adani and Vi as Reliance Jio and Airtel exceeded the conditions across bands and circles.