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Airtel and Jio expected to log steady growth, Vi may falter
Reliance Jio and Bharti Airtel are expected to show steady growth in the June quarter, driven by strong broadband user additions, while Vodafone Idea (Vi) is likely to experience a dip in revenue due to ongoing customer losses. Airtel is anticipated to outperform Jio in terms of average revenue per user (ARPU) due to 2G-to-4G conversions and rising postpaid adoption. Vi's ARPU is expected to remain stagnant amidst limited 4G user gains.
Vodafone UK may offer Rs 2,000 crore equity topup to Vi
Vi may also make more substantial payments to Indus towards cutting its dues after the telco raises debt of ₹23,000-25,000 crore through term loans as planned, analysts added. After the recent sale of its 18% stake in Indus, UK's Vodafone holds 3.1% of the tower company and is said to be in talks with Bharti Airtel to sell these shares, people familiar said.
Stars are aligning! Vodafone Idea share price targets increase after tariff hike
Vodafone Idea's target price sees a boost post-tariff hike, reflecting industry trends. Kotak Equities emphasizes low ARPU in India and the need for Jio to seize monetization opportunities.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
ET Explains: All about vRAN and what it means for Vi
Vodafone Idea (Vi) has completed trials using Samsung's virtualised RAN (vRAN) technology, which is expected to bring substantial cost savings to the telco compared to legacy hardware infrastructure. vRAN is a technology that allows for the complete running of baseband functions as software on commonly available hardware, reducing server or processor capacity at sites. It also allows for the centralisation of some processing functions to local nodes, reducing server or processor capacity at sites.
Vodafone Idea acquires Rs 3,510 crore worth of airwaves in 11 circles
India's Vodafone Idea has spent Rs 3,510 crore to acquire 50MHz of spectrum in 11 circles, strengthening its 4G portfolio and launching 5G services. The acquisition will enable the use of dedicated sub-GHz spectrum for advanced technologies and customer experience. Vodafone Idea has also held 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) solutions.
Vodafone Idea in talks with Samsung to expand 4G networks, roll out 5G
Vodafone Idea (Vi) has initiated 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) technology on a non-standalone architecture. The trials, aimed at expanding its 4G and introducing 5G services, took place in Chennai, Karnataka, and Bihar. Despite its financial challenges and lagging behind rivals Airtel and Jio in 5G rollout, Vi fulfills its 5G spectrum obligations from the 2022 auction with these trials.
ET Graphics: A look at telecom industry's top carriers ahead of India's second 5G spectrum sale
India’s second 5G spectrum sale starts on Tuesday, featuring bids from top carriers Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi). This sale is expected to run for a day or a day-and-a-half and is anticipated to be a low-key affair. Only 10.5 GHz of 5G airwaves are available this time, significantly less than the 72 GHz offered in the country's first 5G spectrum auction in July 2022.
Vi completes minimum 5G rollout requirements
Vodafone Idea (Vi) has announced completion of its Minimum Rollout Obligations (MRO) across all 17 circles where it acquired 5G spectrum in August 2022. This step is essential for commencing 5G services, although Vi has yet to announce detailed rollout plans due to financial constraints. Unlike its competitors Reliance Jio and Bharti Airtel, which have almost completed nationwide 5G rollouts, Vi plans to gradually expand its network starting with equipment orders to vendors like Nokia and Ericsson.
Buoyed by ₹18,000 crore fund-raise, Vi beefs up 4G coverage, network in UP, Uttarakhand
The company plans to add a 900 MHz band layer, which will significantly enhance indoor network experience for its customers in the two circles. “The deployment of L900 coverage will be beneficial in urban areas with dense building infrastructure, as well as suburban and rural areas where signal penetration is a challenge,” Vi said in a statement Thursday.
Vi dials lenders for Rs 23,000 cr term loans, seeks Rs 10,000 cr in bank guarantees
Vodafone Idea (Vi) proposes borrowing Rs 23,000 crore in term loans and seeks Rs 10,000 crore in bank guarantees to enhance its telecom infrastructure and compete with Reliance Jio and Airtel.
Amid delays in clearing dues, Vodafone Idea confident of support from operational creditors
Vodafone Idea (Vi) remains optimistic that its operational creditors, including network equipment suppliers Nokia and Ericsson, as well as tower vendor Indus, will maintain their support despite payment delays. Vi expects its forthcoming 4G and 5G initiatives to generate new business opportunities for these partners. According to Bharti Airtel chairman Sunil Mittal, Vi must settle all outstanding dues with Indus to continue using the tower company’s infrastructure for future services like 5G.
What clearing vendor dues via equity means for firms
Vodafone Idea's board approved preferential allotment of equity shares to Nokia and Ericsson to clear dues. Vi's vendor ATC Telecom also benefitted from stock market gains. Vi's move to dilute equity for debt repayment is uncommon in listed companies.
Vi board gives nod to raising Rs 2,458 crore through preferential issue of shares to Nokia, Ericsson
Telecom company Vodafone Idea (Vi) plans to raise upto Rs 2,458 crore through a preferential issue of equity shares to its two European gear vendors Nokia and Ericsson, clearing part of their pending dues and setting stage for Vi’s 4G expansion and 5G rollout.
Vodafone Idea may issue equity shares to Nokia, Ericsson to settle dues
Telecom company Vodafone Idea (Vi) has said that itrs board will meet on Thursday to consider issuing equity shares or convertible securities on a preferential basis to its vendors.
Vi needs 2.2x ARPU jump to meet payout obligations
Vi’s ARPU, they said, needs to jump 2.2x to around Rs 320 by FY27—from Rs 146 now—even if the cash-strapped telco sees a 50% cut in its adjusted gross revenue (AGR) liability to Rs 35,000 crore via a favourable Supreme Court verdict on its curative plea. As per company data, Vi’s total AGR dues were pegged at Rs 70,320 crore in the quarter to March 2024.
Voda Idea launches extra data for new 4G and 5G smartphone users
Vodafone Idea (Vi) has introduced 'Vi Guarantee Program' offering 130GB extra data for 4G and 5G smartphone users. Users receive 10GB every 28 days for 13 cycles. Chief Marketing Officer Avneesh Khosla stated the program aims to enhance data experience. Available to users on specific plans, excluding certain regions. Aimed at maximizing smartphone potential.
Voda Idea says it’s in talks with Ericsson and other network vendors for buying 5G gear, shares jump 12% on BSE
Earlier this week, Ericsson India MD Nitin Bansal had told ET that the Swedish gear maker is hopeful of getting some 4G/5G deals from Vi soon, especially after the beleaguered telco recently raised over Rs 20,000 crore via the equity route.
Telco EMDs for June 5G sale lowest since 2014 auction: Analysts
India's top telcos submit low earnest money deposits (EMDs) for the upcoming 5G spectrum auction, marking the lowest since 2014. Analysts suggest selective bidding, foreseeing maximum spectrum demand of $2.5 billion, far below previous auctions. Reliance Jio leads EMDs; Airtel and Vi likely focus on renewals and selective bidding for 5G rollout.
Vi fundraising may not click until new govt comes online
Vi’s lenders are seeking clarity on future equity conversions by the government, as well as the outcome of the telco’s curative plea in Supreme Court over an earlier order on its arrears based on adjusted gross revenue. These issues, according to bankers, will ultimately determine the cash-strapped company’s future regulatory payment obligations, especially after the moratorium on the payment ends next year.
Less enthusiasm on the spectrum front
Airtel has to top up on spectrum that is lapsing in select telecom circles. Jio can afford to take it easy after having cornered the biggest chunk of airwaves put up for sale in the previous round of auctions in 2022. In the event, Jio still remains the most hungry for spectrum, signalling its interest to buy three times as much as Airtel, and 10 times as much as Vi.
Signalling clarity on payment approach: Vi may give government more equity to clear its bills
Vodafone Idea (Vi) CEO Akshaya Moondra discussed the telco's strategy to address government dues, including further conversions into equity and utilizing internal accruals. With obligations towards spectrum and AGR payments, Vi aims to leverage these methods before the moratorium ends in September 2025. Moondra also emphasized the viability of tariff hikes post-elections, highlighting the essential nature of mobile services. Vi is actively planning 5G rollouts, aiming for key city deployments over the next six months.
Vodafone Idea plans to open more retail outlets: Executive
Empowered by a recent infusion of equity funding, Vodafone Idea (Vi) aims to expand its network of retail outlets throughout this fiscal year. This strategic move is designed to bolster sales and enhance customer loyalty, essential for the financially constrained telecom operator to heighten its competitive stance against formidable adversaries like Reliance Jio and Bharti Airtel.
Vi investment focus on 4G and 5G: CEO Akshaya Moondra
Vodafone Idea CEO Akshaya Moondra has announced plans to invest in 4G services expansion and 5G rollouts, announcing the successful completion of a ₹18,000-crore follow-on public offer (FPO) subscribed seven times. The telco is committed to customer satisfaction and aims to deliver high-quality service. The joint venture between Vodafone and Aditya Birla Group has set aside over ₹12,000 crore for 4G expansion and 5G rollouts, with ₹5,720 crore allocated for 5G rollouts.
Voda Idea's Rs 18,000-crore FPO a significant milestone, says CEO Akshaya Moondra
“We are ready for a new chapter of growth and innovation that is empowered by our state-of-the-art network, advanced technology and unwavering commitment towards customer satisfaction,” Moondra wrote in a letter to customers Friday.
Vi expects to clear all vendor dues in FY26, say analysts
According to Vodafone Idea management, proceeds from Rs 18,000 crore FPO and proposed Rs 25,000 crore debt funding would enable telco to also upgrade network, say analysts.
Indus Towers facing a Rs 60 cr shortfall in collections from Vodafone Idea in Q4
Indus Towers received an additional Rs 360 crore from Vodafone Idea (Vi) for old dues, but analysts note a Rs 60 crore shortfall in collections. Despite this, Indus' trade receivables increased by Rs 430 crore sequentially in Q4FY24, reflecting the delayed collection of Vi's past outstandings, ultimately settled in April.
ATC Telecom Infra sells 2.8% stake in Voda Idea for ₹1,840 crore
ATC Telecom Infrastructure sold a 2.8% stake to Vodafone Idea, worth ₹1,840 crore, in an open market transaction. Citigroup Global bought shares worth ₹611 crore, with other buyers remaining unknown. Last month, ATC converted debentures allotted by Vodafone Idea into equity, and in January 2024, Canada's Brookfield acquired ATC's India unit in a $2.5 billion deal. Vi recently raised ₹18,000 crore through a follow-on public offer, priced at ₹10-11 per share.
Voda Idea a national asset, FPO sets stage for 2.0: KM Birla
“Vi is not just a telecom company. It’s a national asset with 215 million users and about 8000 MHz spectrum. That so many marquee investors participated in this equity issuance is a testament to the government’s vision of a digital India,” Birla said in an official statement following Vi’s FPO listing on the NSE Thursday.
Vi shares jump nearly 6% a day after Rs 18,000 crore FPO sails through
Last week, Vi had raised Rs 5400 crore from 74 anchor investors by allotting 4.91billion shares at Rs 11 apiece.
5.5 lakh retail investors buy Vodafone Idea shares in Q4
Vodafone Idea's retail investor shareholding surged by 55 lakh post FPO. Individual investor stake reached 6.17%. Mutual funds stake dropped to 2.06%. Company updated exchanges on shareholding. Telecom operator successfully raised Rs 18,000 crore.
UK’s Vodafone offers ‘no comment’ on Voda Idea backing
“The only position which Vodafone Group has taken and that is because of their own shareholders who have said that please ringfence the Indian operations with Indian assets. So, their source of funding is limited to their stake in Indus and generally if one has to look at monetization of Indus, then they would want Indus to get to its fair value. It has actually re-rated quite a lot.”
Why this maverick investor is betting on Vodafone Idea
America's GQG Partners, known for successful bets on Adani companies, is now investing $400 million in Vodafone Idea's share sale, a move seen as a major endorsement for the struggling telecom giant. Vi, facing massive debt and structural issues, hopes the fund-raise will strengthen its position in the market.
Voda-Idea raises Rs 5,400 cr from anchors, GQG may invest $400m
Foreign institutional investors such as GQG Partners, UBS, AustralianSuper, Fidelity, Redwheel Funds, Abu Dhabi Investment Authority, Allspring Global Investments, Morgan Stanley Investment Funds, Government Pension Fund Global, Copthall Mauritius Investment, and Societe Generale were among those that subscribed to the telco's anchor book.
Vodafone Idea's Rs 18,000 cr FPO may attract big investors. Is it worth your money?
Vodafone Idea plans an Rs 18,000 crore FPO on April 18, attracting GQG Partners with $300-400 million bids. Analysts cautious due to profit concerns, low listing expectations, capex needs, 5G delay, and industry challenges.
Vodafone Idea raised Rs 5,400 crore from nearly 60 anchor investors
According to sources, institutions such as GQG Partners, UBS, Morgan Stanley Investment Management, AustralianSuper, Fidelity, and domestic mutual funds like Quant and Motilal Oswal were among those that subscribed to the telecom operator's anchor book. Sources indicate that over 70% of the anchor investors are foreign institutions.
Vodafone Idea expects 5G rollout in 6-9 months after FPO
Vodafone Idea plans 5G launch post Rs 18,000 crore FPO, targeting 40% revenue base coverage in 24-30 months. Rs 5,720 crore allocated for testing and vendor conversations. Challenges faced due to fund shortage.
ATC India asks Vi to convert big chunk of debentures into equity
Vi, a telecom joint venture between UK's Vodafone Group Plc and India's Aditya Birla Group, said it is taking suitable steps to make the allotment to ATC that recently sold its Indian towers business to Canada's Brookfield.
Investors warm up to Vi, but put the fundraising call on hold amid stock fluctuation
Vi plans to raise ₹45,000 crore by the June quarter. Its board last month approved raising ₹20,000 crore via equity or equity-linked instruments. The telco plans to raise another ₹25,000 crore in loans.
Won’t renew fractional spectrum which can’t be used for new tech: Voda Idea
Vodafone Idea (Vi) surrenders fractional spectrum in 900MHz and 1800MHz bands in select circles including Uttar Pradesh (West) and West Bengal due to incompatibility with new network technology. Vi plans to fully switch off its 3G network in FY25 and refarm its airwaves for 4G, boosting overall network capacity.
Vi eyes 40% of revenues from 5G in over two years
In its presentation, the telecom JV between UK's Vodafone and India's Aditya Birla Group, said its delayed entry into the country's next-gen wireless broadband turf would help it access the latest advances in 5G technology in a cost-efficient way. It added that 90% of its radio gear is already 5G-ready. Another strategic focus is refarming its airwaves in the 900 MHz and 2100 MHz bands as part of plans to expand the telco's 4G coverage in its 17 priority markets.
D-St punishes Vi amid skepticism over fundraising
The telco has made several efforts to raise capital in the past. Its board had in September 2020 given approval to raise ₹25,000 crore including in equity, and the company had held talks with banks for debt funding. But these efforts have not been successful so far.
In relief for Vi & Adani, DoT mulls waiving 5G minimum rollout fine
While Vodafone Idea had bought spectrum in the 26 GHz band as well as in the mid-band (3300-3600 MHz), Adani bought airwaves only in the 26 GHz band. Vodafone Idea bought mid-band spectrum in 17 circles and 26 GHz airwaves in 16 circles whereas Adani bought spectrum in six circles.
With new fund infusion, does Vodafone Idea stand a chance of revival?
Vodafone Idea, struggling under debt, has announced a refinancing plan of up to Rs 45,000 crore. The capital infusion aims to pay off dues, expand 4G and roll out 5G. However, challenges like debt servicing and government payouts remain. Survival is crucial for India's telecom sector.
Mavenir and Red Hat collaborate to provide cloud-native open RAN solution for Vodafone Idea
Mavenir is deploying an open RAN network for Vodafone Idea utilizing millimeter wave spectrum. The pilot deployment is in the advanced commercial phase. Mavenir and Red Hat are providing a complete, end-to-end cloud-native open RAN system for Vodafone Idea's pilot deployment.
Airtel wins on active user score in Dec, Jio on 4G/5G additions: Trai
In December 2023, Bharti Airtel outpaced Reliance Jio in adding active users, driven by robust mobile broadband gains, while Vodafone Idea (Vi) continued to lose users, indicating its ongoing struggle against its larger competitors. Airtel added 3 million active users, Jio added 1.21 million, and Vi lost 1.84 million. Airtel's active user base reached 377.54 million, Jio's rose to 424.51 million, and Vi's shrank to 196.68 million.
BSNL's employees union urges government action to utilize Vi's 4G network
The state-run firm’s 4G network is to be deployed by TCS in a phased manner and a few thousand sites are already up and running in a few circles. But since the network is not present pan-India, the telco has been losing customers.
Vodafone Idea asks SC for early hearing of its curative petition on AGR
A Bench led DY Chandrachud while refusing to give any date told the senior counsel to go through proper emailing route for mentioning the case for early hearing.
Vi adds Swiggy One Membership to its bundled pack
Vodafone Idea (Vi) has introduced Swiggy One membership as part of its bundled offerings for postpaid mobile recharges. Vi Max Postpaid users on specific plans will have access to Swiggy One membership, valued at over Rs 2500, at no extra cost.
Services to users won’t suffer, says Vi after Tata Comm terminates deal
The move to terminate services by TCTS was taken after Vi failed to clear dues of Rs 221.19 crore on time. The beleaguered telco, however, said it will not impact services to its customers as the work will now be insourced.
Revenue growth on cards for Jio, Airtel; user loss to weigh on Vodafone Idea
Analysts belive strong broadband user growth and a surge in data consumption driven by the recent Cricket World Cup will help Reliance Jio and Bharti Airtel report sequential revenue growth in their mobile business in India in the fiscal third quarter. Vodafone Idea's mobile revenue, though, is likely to remain stagnant sequentially in the December quarter, stung by heavy customer losses.
Vodafone Idea denies Starlink talks
“In this regard, we would like to submit that the company is not in any such discussion with the named party. We are not aware of the basis of the said news item,” Vodafone Idea said in a regulatory filing.
Telcos unveil special packages to catch the eye of premium users
The competition for premium customers among India's leading mobile carriers is escalating, with Reliance Jio introducing more expensive prepaid mobile plans that include extensive over-the-top (OTT) entertainment benefits. In response, Vodafone Idea (Vi) has launched a 365-day recharge pack priced at ₹3,199, offering an annual Amazon Prime video subscription for prepaid users, along with unlimited voice calls, 100 text messages, and 730GB of data.
Waiver provisions scrapped, new telecom bill may derail Voda Idea recovery: Experts
In the original draft, it was contemplated that such charges could be waived off in certain situations in the interest of consumers, ensuring competition, reliability and continued supply of telecom services, or availability of telecom network or telecom infrastructure in India.
TDSAT directs DoT to adjust excess Rs 755.52 cr collected from Voda Idea towards statutory dues
“…we hereby direct the respondent (read: Government of India) to adjust Rs 755.52 crore towards liability of this petitioner (read: Vi) for licence fee and towards spectrum usage charges (SUC) within 15 days from today,” the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) said in an order, dated December 15, 2023.
Vodafone Idea close to selling fibre assets, eyes up to Rs 12,000 crore
Vi had tried to sell its fibre assets and data centre business in 2019, but the deal could not be concluded due to differences over valuation. The company has over 160,000 km of optic fibre and, since wired broadband is set to be a big revenue stream, Vi is hopeful of closing the deal at a good valuation.
No plans to take over Vodafone Idea: Government
The government became the largest stakeholder in Vi with 33.1% stake in February this year, when the telecom department converted the firm’s accrued interest on deferred adjusted gross revenue (AGR) dues worth Rs 16,133 crore into equity.
Vodafone Idea halts revenue market share decline in Q2
The telecom JV between UK's Vodafone Plc and India's Aditya Birla Group reported a steady 16.3% RMS in the fiscal second quarter-unchanged from the number reported in the April-June period-data collated by the Telecom Regulatory Authority of India (Trai) showed. Vi had last reined in its RMS fall two years ago in Q2FY22.
Reliance Jio adds active users at cost to Airtel, Vi’s 2G base
Reliance Jio emerged as the sole telco to gain active mobile users in August 2023, while Bharti Airtel and Vodafone Idea (Vi) experienced declines, as per telecom regulator data. Analysts noted Jio's success in attracting older rivals' 2G users through the popular Jio Bharat feature phone amidst rising demand. Jio expanded its active user base to 417 million with an addition of 1.2 million users, while Airtel and Vi dwindled to 376 million and 199 million, respectively, shedding 0.4 million and 2.9 million active users each.
Vodafone Idea to make significant investments to roll out 5G: KM Birla
Vodafone Idea is set to make significant investments in rolling out 5G networks and expanding 4G coverage throughout India, said Kumar Mangalam Birla, additional director, Vodafone Idea. This commitment was announced at the 7th India Mobile Congress, reflecting the company's determination to support the government's vision, including initiatives like OpenRAN.
Indus Towers PAT up 49% in Q2, Vi challenges remain
Indus Towers managing director Prachur Sah said the company clocked record tower additions for a quarter in the three months ended September, surpassing the June quarter performance on this metric.
Voda Idea's survival critical for Indus Towers, says Bharti Enterprises' Akhil Gupta
Akhil Gupta, vice chairman of Bharti Enterprises, has stated that the survival of Vodafone Idea (Vi) is crucial for the growth of Indus Towers, in which Bharti Airtel holds the largest stake. Gupta believes that Vi's investment in 4G and eventual rollout of 5G will drive Indus' growth. He also expects 5G monetization to come from increased data consumption and fixed wireless services, with potential for accelerated fixed broadband adoption. Gupta emphasized the importance of having three fully functional private operators in the Indian telecom industry.
Vi launches travel offer for pre-paid user base
The offer, which is exclusive to users of Vi’s mobile application, includes a raffle of sorts that will allow users to win travel coupons on the EaseMyTrip portal and additional data on select packages by recharging their prepaid mobile number during the offer window.
After Vodafone Idea clarification, Verizon too denies Vi acquisition rumours
Verizon has denied rumors of acquiring Vodafone Idea, stating that they have no plans to buy the telecom company. Sowmyanarayan Sampath, CEO of Verizon Consumer Group, emphasized the company's focus on growing in the US market and doubling down on capital commitments there.
India plans graded customs duties on telecom components to boost domestic manufacturing
India is planning to impose customs duties on telecom components in a phased manner to discourage imports and promote domestic manufacturing. The Department of Telecommunications is considering an initial 10% import duty from January, increasing to 15% by October next year. The move is part of the government's Phased Manufacturing Programme, which aims to boost local production and value addition in the telecom sector.
Vi pays Rs 1701 crore to DoT for 5G spectrum acquired in 2022 auction
This the second installment for spectrum acquired in last year’s auction where Vodafone Idea had bought 5G spectrum in the 3300 MHz and 26 GHz frequency bands for Rs 18,799. “We wish to inform that the Company has today, i.e. 16th September, 2023, made the requisite payment of ~ Rs. 1,701 crores (including interest) to the Department of Telecommunications, Government of India, towards 2022 Spectrum Auction Instalment,” Vi said in the filing.
Reliance Jio, Vi bat for bringing aviation communications under unified licence
Both Jio and Vi have told the Telecom Regulatory Authority of India (Trai) that in the interest of uniformity in regulation and ensuring passenger safety, communication services related to aviation must be brought under a permanent regulatory oversight by inclusion of a new authorisation under the unified licence.
Vodafone Idea rejigs postpaid structure to stem user churn amid 5G roll out delay
“Vi Max is not only about connectivity but also designed with an intent to empower our valued customers to determine the features that are most useful for an optimal experience as well as value for money,” Avneesh Khosla, chief marketing officer, Vi said in the statement
Vi extends redemption of 1st tranche of OCDs issued to ATC to 18 months, post-allotment date
Last month, Boston-based ATC had informed the US Securities and Exchange Commission (SEC) that Vi’s OCDs would mature in two tranches of Rs 800 crore each on August 27, 2023 and August 27, 2024. That has now changed.
Relief for Vodafone Idea as ATC agrees to give it more time to pay dues
Vodafone Idea (Vi) has extended the redemption period of 8,000 optionally convertible debentures (OCDs) – out of the 16,000 OCDs issued to American Tower Corp’s India unit (ATC Telecom Infrastructure Pvt Ltd) – to 18 months from the allotment date, instead of the earlier six-month deadline.
Vodafone Idea shares rise over 3% as co plans to clear Rs 2,400 cr dues by September
Vodafone Idea had to pay a license fee of around Rs 770 crore by July and Rs 1,680 crore as the first installment for the spectrum it purchased in auctions that were held last year.
'Strong possibility of govt owning over 70% in Voda Idea once moratorium ends, may limit equity funding'
The government is already Vi’s largest shareholder with a 33.1% stake after it converted the telco’s accrued interest towards adjusted gross revenue (AGR) arrears into equity in February 2023. The telco’s co-founder UK’s Vodafone Plc and India’s Aditya Birla Group (ABG) jointly own 50.4% in Vi. Of this, Vodafone UK has a stake of 32.3%, while the Indian group has 18.1%.
Rs 2,000 cr financial support from a Vi promoter insufficient: Analysts
Earlier this week, loss-making Vi said one of its promoters had agreed to provide direct or indirect financial support to the extent of Rs 2,000 crore for meeting the telco’s impending payment obligations. Vi did not name the specific promoter.
Claims worth Rs 27,328 crore against Vi, erstwhile Voda entities in India under litigation
The pending litigations include a Rs 3,857 crore demand – the highest – raised by the Department of Telecommunications (DoT) on erstwhile Vodafone entities for transfer and merger of licences in India. The second-highest claim of Rs 3,599 crore relates to a one-time spectrum charge (OTSC), also raised by the DoT.
Vi tells DoT it will pay Rs 1,680 cr 2nd 5G spectrum instalment by using 30-day grace period option
Vodafone Idea (Vi) has informed the Department of Telecommunications (DoT) that it plans to pay the second instalment of Rs 1,680 crore for 5G spectrum purchased in last year's auction by utilising the 30-day grace period option available under the 5G spectrum sale rules. The company had earlier purchased 5G airwaves worth Rs 18,799 crore and opted to clear its dues to the government in 20 equal instalments.
Vi, Adani data networks may not get exemptions over 5G rollout
Vodafone Idea (Vi) and Adani Data Networks are expected to face financial penalties for failing to meet minimum rollout obligations for 5G airwaves in India's mid band and 26 GHz bands. Officials stated that the two firms had requested relaxations for the rollout conditions outlined in the notice inviting application for the auction. Previous attempts to request extensions have been denied.
Vi pays 10% of Q1 SUC & licence fee, may have sought time to pay rest
Vodafone Idea has paid around 10% of its licence fee and spectrum usage charge for the June quarter and is likely to have sought more time from the government to clear the balance in multiple tranches, two people aware of the matter said.
Vi, Truecaller tie up to secure customer communication
Vodafone Idea has partnered with Truecaller to offer secure customer communication using the latter’s Verified Business Caller ID solution, said the telecom operator. Scammers posing as customer service agents often post fraudulent contact details on fake social media pages and websites that make consumers vulnerable to fraud.
Vi likely to fall back further on 5G, lose ground to rivals: Analysts
"Our analysis shows that Vi will be able to rollout 5G only in 10 circles in seven states with its annual internal accrual of around '83 billion (without fundraise), as Nokia and Ericsson have refused to supply 5G gear to Vi on credit," Emkay analysts said. This, they added, would mean 15% 5G coverage for Vi.
Voda Idea expands entry-level rate hike to 3 circles from 1
“Vodafone Idea last week raised entry level tariffs (for 28 days validity) to Rs179 per month (from Rs99) in two more service areas (total 3 service areas now),” analysts from Goldman Sachs noted in a recent report.
Vi paying monthly bills, but clearing arrears may need fundraise: Indus Towers
"...the fundraising for Vi is still critical in order to clear past dues... (We) await clarity (from the company) on past recoveries," JP Morgan said in a note after hosting an investor conference with Indus CFO Vikas Poddar. Poddar has also said Indus may consider dividend payouts this financial year if collections from Vi don't worsen.
Vodafone Idea Q4 Preview: Co likely to remain in red on subscriber losses, muted revenue
Vodafone Idea is expected to report a consolidated net loss of INR75.24bn ($980m) for the March quarter due to continued losses in subscribers, muted revenue growth and negative operating leverage. This would widen from a loss of INR65.63bn a year ago. Consolidated revenue for the telecom firm for the quarter is expected to fall 1% sequentially to INR105.43bn ($1.38bn), with brokers tracking the company highlighting subscriber losses while also indicating the ARPU will rise.
Trai denies report that it is probing all tariff plans for predatory pricing
“There is no special drive being undertaken by Trai to probe all the past tariff plans filed by telecom companies except those specific plans under examination,” the regulator said in a statement Friday.
Ericsson completes charging consolidation programme for Vodafone Idea
Ericsson has completed the charging consolidation programme for Vodafone Idea Ltd (VIL) in India, implementing Ericsson Charging as the single solution across the entire country. VIL now has a simplified prepaid charging stack, which improves uniformity of architecture in charging and data policy, customer experience, and life cycle management. With a unified architecture and solution for charging and data policy, the consolidated solution enables the telecom operator to launch new products faster with more efficiency as well as meet the demands of today's digital environment and future business needs.
Indus Towers shares jump 10% post Q4 results. Should you buy, sell or hold?
Indian telecom infrastructure provider Indus Towers saw a 10% increase in its share price after it reported a Q4 net profit of INR 1,399 crore ($185m), representing a 23% YoY decline. The company made an additional provision of INR 43.4 crore towards doubtful debt in the quarter, with industry executives estimating that Vodafone Idea, the company’s biggest customer, owes Indus around INR 7,000 crore. This has led to a wavering outlook regarding Indus’ future success, with some experts suggesting a neutral or reduced rating.
Indus Towers pushes Vi to clear dues, may not allow any new payment plan
At its fiscal fourth quarter earnings call Thursday, Indus' top management said that while Vi has started clearing 90-100% of current dues, the tower company is closely monitoring the telco's payment patterns and its funding situation to recover its accumulated past dues as per the agreed schedule.
Vi showcases anti-phishing solution to Trai, RBI & Sebi
The operator, currently running a trial of the solution developed by Tanla Platforms, showed an accuracy rate of over 99%. This means that the artificial intelligence (AI)-based solution is stopping phishing attempts through SMSes most of the time.
ATC plans stake sale in India operations, cites weak customer financials
This comes after its largest customer in the country Vodafone Idea (Vi), in early 2023, said it won't be able to resume payments in full of its contractual obligations owed to ATC. ATC, which recently took a $411.6 million (about ₹3,374 crore) impairment charge due to cash-strapped Vi's partial payments, has further warned that it would be forced to take more similar charges amidst the Indian telco's financial woes.
Voda Idea opposes networth criteria for setting up cable landing stations
The cash-strapped telco gave its counter comments for the consultation paper on Licensing Framework and Regulatory Mechanism for Submarine Cable Landing in India floated by the Telecom Regulatory Authority of India (Trai) late last year.
Vi ties up with Atrangii to expand regional content catalogue
Atrangii’s content library includes titles across genres such as thriller, mythology, crime, comedy, and romance like The Golden Harvest, Panchali, Paro, The Devil Inside to shows such as The Bull of Dalal Street, and others.
5G propels India into top 100 in Ookla's Speedtest Index
Median download speeds increased to 29.85 Mbps in January 2023 from 13.87 Mbps in September 2022. As a result, India jumped to 69th position on Ookla’s Speedtest Global Index, up 49 places from 118th in September 2022. Additionally, the 5G network launch by Reliance Jio and Bharti Airtel has accelerated Vodafone Idea’s customer churn, with both gaining customers at Vi’s cost
Airtel outpaces Jio in revenue market share growth for FY3Q: Trai data
Loss-making Vodafone Idea (Vi) continued to lose RMS share in the third quarter, FY23, unable to fight its financially-stronger rivals, Airtel and Jio, in both urban and rural markets.
Vodafone Idea's bank loans fall 43% on year for quarter ending December, vendors' dues remain
At Vi's fiscal third-quarter earnings call on February 15, chief executive Akshaya Moondra said the cash-strapped telco needs to get funding first to be able to make investments and improve its operational cash flows before it addresses the vendor payments situation.
DoT to soon ask Vodafone Idea to clear 3rd quarter dues
"Through the notice, we will ask the company to share the entire amount, which needs to be paid as statutory dues for the December quarter and the tentative date for the payment," an official told ET on condition of anonymity.
Govt becomes single largest shareholder in VI with 33.44%
The board, at its meeting today, approved allotment of 16,133,184,899 equity shares of face value of Rs 10 each at an issue price of Rs 10 per share, aggregating Rs 161,331,848,990 to the Department of Investment & Public Asset Management, Government of India (acting through President of India),” Vi said in BSE filing late Tuesday evening
Govt decision to convert Vi's interest on dues to equity to keep telco away from NCLT: Analysts
However, the loss-making Vi is likely to face an annual shortfall of about Rs 24,700 crore ($3 billion) in free cash flows (FCF) from 2026-27, once spectrum payments resume, said analysts. This is since the dues conversion into equity amounts to about Rs 16,100 crore debt reduction for Vi, which is barely 7% of the telco’s whopping Rs 2.2 lakh crore net debt and won’t result in any immediate savings in FCF, said Goldman Sachs.
Vodafone Idea board okays reissuance of OCDs worth Rs 1600 cr to ATC
The Vodafone Idea stock closed at Rs 7.07, 4.12% up at the end of trading on Tuesday, after a rally on Monday in anticipation of the January 31 board meeting.
Vodafone Idea board to discuss Rs 1,600 cr debenture issue for ATC on January 31
The telco has yet again failed to conclude the issuance within the earlier agreed timeline due to the delay in the government converting its Rs 16,130-crore accrued interest on deferred adjusted gross revenue (AGR)-related dues into equity.
