Vodafone Idea Ltd, India's third largest mobile service provider, will shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order, its billionaire chairman Kumar Mangalam Birla said on Friday. "If we we are not getting anything then I think it is end of story for Vodafone Idea," Birla said at the HT Leadership Summit when asked about the future of Vodafone Idea in absence of a government relief on payment of Rs 53,038 crore dues.
Bharti Airtel and Vodafone Idea on Sunday announced a tariff hike in the range of 15 per cent and 40 per cent across different plans. The tariff hike by both companies will be applicable from December 3, 2019. Vodafone Idea on Sunday said its new plans for its prepaid products and services would be available across India, starting 00:00 hours of December 3, 2019.
Airtel's new plans represent tariff increases in the range of a mere 50 paise per day to Rs 2.85 per day and offer generous data and calling benefits.
The record losses posted by Bharti Airtel and Vodafone Idea and the resulting erosion in their net worth have led to an immediate rise in the leverage ratio of these two operators. While Vodafone Idea has taken the maximum hit, Bharti Airtel has escaped with a minor deterioration in its balance sheet ratios.
Vodafone Idea’s net debt to equity ratio has jumped to a record level of 4.5x at the end of September this year, as against 1.24x at the end of June and 1.8x at March-end.
Vodafone idea, which is reeling under $14-billion net debt, mounting losses and dwindling subscribers, has approached creditors for better payment terms to revive the company, people with direct knowledge of the matter said.
Vodafone Idea, formed by last year’s merger of the British telecom firm’s local unit with Idea Cellular, has warned lenders that it won’t be able to honour its commitments for long under current conditions, the people said, asking not to be named as the discussions are private.
Vodafone Group Plc’s Indian venture, reeling under $14 billion of net debt, mounting losses and dwindling subscribers, has approached creditors for better payment terms to revive the sinking carrier, people with direct knowledge of the matter said.
Vodafone Idea Ltd., formed by last year’s merger of the British telecommunications firm’s local unit with billionaire Kumar Mangalam Birla’s Idea Cellular Ltd., has warned lenders that it won’t be able to honor its commitments for long under current conditions, the people said, asking not to be named as the discussions are private.
The Supreme Court verdict on adjusted gross revenue in telecom has dealt a huge blow to the operations of Vodafone Idea, severely battered by the vicious price war in the sector since the launch of Mukesh Ambani’s Reliance Jio in 2016.
The company on Thursday warned the latest verdict on the definition of telecom revenue will have “damaging implications” for the industry, and indicated it could explore filing a review application after legal consultation.
The fortunes of financially stressed telecom incumbents worsened on Thursday as they face a massive `92,000-crore liability with the Supreme Court upholding the government’s definition of adjusted gross revenue. While the amount owed by Bharti Airtel is `21,682 crore, Vodafone Idea needs to pay Rs 28,308 crore.
Vodafone Idea Business Services, the enterprise arm of telecom operator Vodafone Idea, on Wednesday launched a suite of online presence tools to power small businesses. Named ‘WebBuddy’, the suite is a Do-it-Yourself (DIY) website builder, which enables small businesses to set up their professional responsive websites, get advanced business email, or start selling products through an integrated e-commerce solution, a company statement said.
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