Call for help

31 October 2019 By Una Galani Follow @ugalani

The telecom giant’s local unit is straining under $14 bln of debt. New Delhi has added to the burden, charging billions in contested levies, while red tape holds up its tower sale. Without fresh capital or debt relief for Vodafone Idea, India is heading towards a duopoly.

This content is for Subscribers only

Context News

Mumbai-listed Vodafone Idea on Oct. 30 denied media reports that it had approached lenders to recast its debt.

The Indian government has set up a panel to suggest ways to alleviate financial pressures on the telecoms sector, Reuters reported on Oct.29 citing a ministry source.

India’s Supreme Court on Oct. 24 upheld a demand on telecom operators from the Department of Telecommunications for a spectrum and licence payment of nearly $13 billion, which the ministry said was overdue. Vodafone’s bill is the largest at almost $4 billion, followed by Bharti Airtel and others, including rivals that are no longer in business.

Telecom operators had fought the ministry over the definition of so-called adjusted gross revenue; a metric used to calculate spectrum fees and licence charges paid to the government.

Following the judgement, Bharti Airtel postponed the release of its quarterly earnings by more than two weeks to Nov. 14. Vodafone has said it will ask the government to consider granting relief, including by waiving interest and penalties, which make up the bulk of the total bill.

Email a friend

Please complete the form below.

Required fields *