Vi, Adani data networks may not get exemptions over 5G rollout

Vodafone Idea (Vi) and Adani Data Networks are unlikely to be given any extension or exemption from meeting the minimum roll out obligations related to 5G airwaves in the mid band (3300-3600 MHz) and 26 GHz bands and may need to pay financial penalties for the circles that they don't meet the milestones.

As per officials, the two firms had sought relaxations for meeting 5G minimum roll out norms. But the Department of Telecommunications (DoT) believes that the conditions for roll out were specified in the notice inviting application (NIA) and everyone needs to comply with that.

Airwaves for 5G services were allotted to the auction winners—Reliance Jio, Bharti Airtel, Vodafone Idea and an Adani Enterprises unit—by the middle of August 2022 and roll out deadlines need to be met by the end of the first year of allotment.


“The time period for roll out of the network as per the roll out obligations… shall be deemed as the essence of the contract and the network must be rolled out not later than such specified time period(s). No extension in prescribed due date will be granted,” the NIA for the 5G spectrum auction said.

However, the DoT is also checking if there was any precedence of granting any such extension/exemption since auctions began. But as per industry executives, no such extension has ever been given by the DoT. For instance, even Reliance Jio had to comply with the obligations in 2015, much before the commercial launch of 4G services in 2016.

Given the current circumstances, the situation becomes trickier for Adani, which has 5G spectrum only in the 26 GHz band, and Vodafone Idea, which has across the mid band and 26 GHz bands, as Reliance Jio and Airtel have not only met but far exceeded the conditions across bands and circles, said experts.

The roll out obligations for both the 26 GHz band and the mid-band (3300-3600 MHz) are similar for the first year. This means that by the end of first year or phase 1, 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.

Jio and Airtel have met the targets for 26 GHz and have far exceeded the rollout norms for mid-band. Currently, Jio is rolling out 5G utilising mid-band (3300-3600 MHz) and 700 MHz band, while Airtel is using the 1800 MHz in combination with the mid-band as there are devices available which support the bands.

“The lack of ecosystem can’t be termed as a means to get an extension (of the timeline for meeting the roll out obligations) when two operators have far exceeded the targets,” said a second official on condition of anonymity.

Queries sent to Vi and Adani Data Networks remained unanswered at the time of going to press.

The roll out obligations are categorised in three phases—phase 1 (by end of first year), phase 2 (by end of third year) and phase 3 (by end of fifth year) since the allocation of spectrum.

As per rules, if a company fails to roll out the network within the prescribed time, the government can levy a penalty of Rs 1 lakh per week for first 13 weeks; Rs 2 lakh for the next 13 weeks and thereafter Rs 4 lakh for 26 weeks subject to a maximum amount of Rs 1.40 crore for each phase. For a delay of more than 52 weeks in any phase, in addition to imposition of maximum amount of penalty, the spectrum assigned may be withdrawn.