Vodafone, the world’s second-largest mobile operator’s future in India could be in doubt after the Supreme Court’s decision on AGR due to which it is facing dues worth Rs. 28,000 crores. Vodafone has decided not to infuse any equity in the Indian market.
Crux of the Matter
Telecom companies are facing heavy financial burdens due to unsupportive regulation, excessive taxes and the AGR Verdict by the supreme court.
Vodafone and other telecoms have asked the government for a relief package of a two-year moratorium on spectrum payments, lower license fee and taxes and waiving of interest and penalties.
Vodafone CEO Nick Read said, “In India, Vodafone formed a joint venture with Idea in 2018 and it has been a very challenging situation for a long time, but it remained a sizable market where Vodafone had a 30% share. It’s fair to say it’s a very critical situation now.”
Curiopedia
Vodafone Group is a British multinational telecommunications conglomerate with headquarters in London and Newbury, Berkshire. It operates in the regions of Asia, Africa, Europe, and Oceania. Among mobile operator groups globally, Vodafone ranks 4th in the number of mobile customers. Vodafone owns and operates networks in 25 countries, and has partner networks in 47 further countries. On 31 August 2018, Vodafone India merged with Idea Cellular and was renamed as Vodafone Idea Limited. Currently, the Vodafone Group holds a 45.1% stake in the combined entity, the Aditya Birla Group holds 26%. More Info
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