Vi and Adani Group could face penalties for failing to achieve the specified 5G rollout objectives.

Vodafone Idea (Vi) and Adani Data Networks are facing potential fines from the Department of Telecommunications for failing to meet the specified 5G rollout targets. Vi might incur a penalty of approximately Rs 14 crore, while Adani Data Networks could face a fine ranging from Rs 5-6 crore. Show cause notices have been issued to both companies, prompting them to provide reasons for the delay and outline timelines for launching 5G services.

The Department of Telecommunications has also requested explanations from Vi and Adani Data Networks regarding the delays in meeting the minimum rollout obligations for 5G spectrum. The obligations required operators to commercially launch services in both metro and non-metro circles within the first year. Despite this, neither Vi nor Adani Data Networks has initiated 5G services commercially in any city even more than a year later.

In August of the previous year, Vi stated that it had made minimal investments in two out of 17 circles but had not yet launched services commercially. Vi's CEO, Akshaya Moondra, expressed the company's intent to roll out a commercial network, acknowledging the penalty, estimated to be between Rs 12-13 crore for the 15 circles where services were not rolled out.

Vi's official website mentions 5G readiness in select places like Pune and Delhi. Adani Data Networks, on the other hand, purchased 400 MHz spectrum in the 26 GHz band during the 5G spectrum auctions in July 2022. The company is reportedly exploring ways to deploy a 5G network for private captive networks, focusing on data usage in ports, logistics, and power generation, rather than consumer mobility.

Both Vi and Adani Data Networks had sought an extension of the August 16, 2023, deadline for meeting minimum 5G rollout obligations. Vi's delay is attributed to funding issues, while competitors Airtel and Jio have made significant progress in 5G site installations, with Jio claiming a nationwide rollout ahead of schedule. The total 5G subscribers on Airtel and Jio networks have surpassed 150 million according to industry estimates.