May restrict services to Vodafone Idea if dues unpaid: Indus Towers to Trai
Indus Towers has informed the Telecom Regulatory Authority of India (Trai) that it may limit services to Vodafone Idea (Vi) due to mounting receivables, as reported by The Economic Times. The company has also criticised Vi for its "wilful and continuous" failure to meet payment obligations.
As of September 30, Vi is in debt to Indus Towers to the tune of Rs 7,864.5 crore.
In a letter to Trai, Indus Managing Director Prachur Sah stated, "Vi's defaults and actions have put Indus in serious financial constraints and a precarious situation. Should Vi continue to breach its payment obligations, Indus would not only pursue all lawful remedies but also be entitled to mitigate its losses by restricting its services to Vi."
Sah further noted that if other customers of Indus also begin to seek waivers or delay payments, the stability of the entire telecom infrastructure in India could be jeopardised.
The suspension of Indus Towers' services could exacerbate Vi's ongoing challenges. According to monthly subscription data released by Trai, Vi lost 1.32 million subscribers in July, following a loss of 1.29 million subscribers in June.
The company currently provides mobile coverage to approximately 228 million customers, who would be adversely affected if Indus Towers chooses to suspend its services.
As of 10 a.m. on Thursday, shares of Vi were trading at Rs 11.37 each on the BSE, down by 1.04.