Vodafone Idea (Vi), one of India’s telecom operators facing financial challenges, has encountered setbacks in securing funds from the US International Development Finance Corporation (DFC) for the deployment of Open-RAN and related technologies. Despite Vi’s assurance of closing the funding four months ago, the process remains unresolved, drawing attention from the Department of Telecommunications (DoT).
DFC’s Role and Vi’s Endeavors
The US DFC, a finance institution of the United States government, collaborates with private companies to invest in various sectors and address critical challenges in the developing world. Vi has been actively seeking funds from the DFC to support the implementation of Open-RAN, a pivotal telecom technology for the future. However, the telco has faced difficulties in securing these funds, jeopardizing its 5G rollout plans.
A previous report indicated that Vi was conducting Open-RAN trials with US-based Mavenir as part of its efforts to embrace the next generation of telecom infrastructure. The trials focused on establishing a 5G network based on Open-RAN technology across select circles.
Challenges and Implications for Vi
The delay in securing funds from the US DFC poses challenges for Vi, especially concerning its 5G rollout ambitions. The inability to launch 5G has been impacting Vi’s subscriber market share, and the impending end of the moratorium period in FY26 adds further financial pressure. Vi faces the obligation to pay the government Rs 30,000 crore annually for deferred adjusted gross revenue (AGR) dues and spectrum usage charges (SUC).
In addition to these financial obligations, Vi must address debts related to 5G spectrum, current year’s license fees, and payments to vendors and financial institutions. The urgency to raise funds in the short term becomes crucial for Vi to enhance market share swiftly and improve revenue margins.
