Vodafone Idea (Vi) is facing challenges in finalizing a deal with investors, leading to the likelihood of missing its December deadline for raising fresh funds, as reported by The Economic Times (ET). Despite this setback, Vi is actively engaged in discussions with the Export-Import Bank (Exim) of the United States to secure capital for acquiring equipment essential for its 5G network deployment.
The delay in securing additional funds is impacting Vi’s ambitious plans to launch its 5G services. Previously, Vi had announced its goal to raise up to Rs 20,000 crore through a combination of debt and equity. It’s worth noting that Vi is the sole private telecom operator in India to have initiated the rollout of its 5G network.
The most recent data from the Telecom Regulatory Authority of India (Trai) indicates a sustained decline in Vi’s subscriber base over the past 18 months. In August alone, the company lost 49,782 users. Trai’s data also reveals an increasing trend in Mobile Number Portability (MNP) requests, with 12.67 million subscribers seeking to switch operators in August, up from 11.7 million in July. This suggests a continued migration of Vi users to other telecom operators.
According to the ET report, Vi has been conducting trials with US-based Mavenir for a 5G network based on Open-RAN architecture in certain telecom circles. The company is reportedly on the verge of signing an agreement for equipment supply.
The Open-RAN (O-RAN) trials with US companies are viewed as a strategic move toward potential deployment in the future. It is important to note that funding for these trials is considered independent and delinked from the ongoing fundraising efforts, according to a Vi spokesperson quoted in the report.
While Vi explores Open-RAN trials, its competitors, Jio and Airtel, continue to opt for traditional network vendors such as Nokia, Samsung, and Ericsson for their conventional Radio Access Network (RAN) infrastructure. Despite the potential advantages of Open-RAN, experts caution that the technology is still in its early stages of development.
