VIL says 5G roll-out likely in 6-7 months after getting funds

Debt-ridden telecom firm Vodafone Idea said it will need 6-7 months to roll out 5G services after securing funding, and discussions with investors are underway. Vodafone Idea CEO Akshaya Moondra during the company's earnings call said that the telco is in discussion with various vendors for the 5G roll-out as well as developing use cases.

"Having made large investments and no monetisation happening, I think the industry does need to see some movement towards monetisation. Let's say if we are launching 5G probably in the next 6-7 months’ time, then we will have a better idea what is happening on the monetisation front. After funding is there, we will need some time to roll out. Let's say 6-7 months," Moondra said.

He said the company will be able to roll out 5G only after funding is in place, while refusing to say anything on the status of funding as it is in the discussion stage.

During the earnings calls for September 2023 quarter, Moondra had expressed optimism to close discussions on funding in December 2023 quarter.

Debts of around Rs 5,400 crore are coming up for service for Vodafone Idea in the next financial year.

"The Rs 5,400 crore payment includes Rs 533 crore of spectrum payouts, the principal part. Then there is about Rs 3,200 crore-plus of bank debt and then there is Rs 1,600 crore of OCDs where repayment is dependent on whether conversion happens or not. If they are converted into equities, that Rs 1,600 crore will go out of this Rs 5,400 crore," Moondra said.