DoT Disappointed With Vodafone Idea’s Promoters Over Funding Delay: Report

DoT Disappointed With Vodafone Idea’s Promoters Over Funding Delay: Report

In a worrisome development for Vodafone Idea, the delay in securing a crucial funds infusion of Rs 5,000 – Rs 7,000 crore from its promoters has raised concerns among top officials in the telecom department. The failure of Vodafone Idea’s promoters to deliver on their commitment to inject funds into the struggling telecom carrier has disappointed officials, LiveMint quoted sources familiar with the department’s view.

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Also Read: Vodafone Idea 5G Expected to Be Launched in June: Report

Funding Delay Sparks Concern

Despite assurances, the promoters have been unable to fulfil their promise to infuse the minimum required funds, leaving officials questioning their ability to raise external funds. The lack of timely capital injection has had repercussions on Vodafone Idea’s operations, including its ability to introduce 5G services.

Impact on 5G Rollout and Competitors

In contrast, rival telecom players Reliance Jio and Bharti Airtel have been making rapid strides in their 5G rollout plans, aiming to achieve comprehensive urban area coverage by year-end.

Although Vodafone Group and Aditya Birla Group, the promoters of Vodafone Idea, had invested Rs 4,500 crore in March 2022, no fresh capital infusion has occurred since then. This absence of funds has not only hindered the company’s growth prospects but has also hampered its network upgrade initiatives, according to the report.

Also Read: Vodafone UK Not Confident About Vodafone Idea’s Ability to Make Future Payments

Vodafone Idea a Subject of Discussion within Department

The report quoted a second official who said Vodafone Idea has been generating funds to meet its quarterly dues with interest. However, a substantially larger amount of capital is required to modernize and enhance its network infrastructure. These concerns have been the subject of discussions within the telecom department in recent weeks, even as Vodafone Idea is working on a revival plan.