Vodafone Idea (Vi) and Adani Data Networks could soon be penalised by the Department of Telecommunications (DoT) for not meeting the minimum 5G rollout obligations. All the Unified License holders who bid for the 5G spectrum in 2022 had to meet the minimum 5G rollout obligation, as per Notice Inviting Application (NIA). But Vodafone Idea and Adani Data Networks have not done so. Thus, the DoT now has the power to penalise the companies. The last date to meet the obligations is August 17, 2023.
Since Vi has not launched 5G anywhere, it is unlikely that the company will be able to do so in a day. According to a Livemint report, DoT will invoke a clause in the NIA that mandates penal action against the defaulting companies. As per the report, for now, there's only a proposal, and a final decision is yet to be taken by the DoT.
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The telecom department even has the power to take away the spectrum from the companies. But most likely, that won't happen. DoT does have the power to penalise the companies financially.
How Much Penalty Will the Companies Pay for Not Meeting 5G Rollout Obligations
The companies would have to pay Rs 1 lakh per week for the first 13 weeks and then Rs 2 lakh for the next 13 weeks for not meeting the minimum rollout obligations. That's a total of Rs 39 lakh in 26 weeks, averaging Rs 1.5 lakh penalty per week. While it isn't a humongous amount, it would certainly not be good for Vodafone Idea, which isn't making any profits from its operations.
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The companies had requested the DoT for extra time to roll out 5G. But the DoT is unlikely to offer them any extra special treatment. The other two telcos, including Jio and Airtel, have been rolling out 5G at a rapid pace.
