Vodafone Idea Limited (Vi) and Adani Data Networks are unlikely to get 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 for which they do not meet the milestones.
According to industry sources, the two firms had sought relaxations for meeting the minimum 5G roll-out obligations. However, as per the NIA for the 5G spectrum auction, 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 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, the 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.
As per rules, if a company fails to roll out the network within the prescribed time, the government can levy a penalty of Rs 100,000 per week for the first 13 weeks, Rs 200,000 for the next 13 weeks and thereafter Rs 400,000 for 26 weeks subject to a maximum amount of Rs 14 million 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more than 52 weeks in any phase, in addition to imposition of maximum amount of penalty, the spectrum assigned may be withdrawn.
