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Highlights
- Vodafone Idea (Vi), the third-largest telecom operator, is looking to pay off spectrum dues in the next three years.
- The telecom operator has nearly about Rs 49,000 crore in spectrum dues over the next three years.
- If the telco's spectrum dues go down, that would help with getting the confidence of the investors and the banks to infuse more debt into the telco.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Vodafone Idea (Vi), the third-largest telecom operator, is looking to pay off spectrum dues in the next three years. The telecom operator has nearly about Rs 49,000 crore in spectrum dues over the next three years. If the telco’s spectrum dues go down, that would help with getting the confidence of the investors and the banks to infuse more debt into the telco. Kumar Mangalam Birla, the chairman of the Aditya Birla Group (ABG), speaking at the 31st annual general meeeting (AGM), said that they are looking to clear spectrum payments over the next three years.
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“Our AGR (adjusted gross revenue) payments are deferred to FY35… The current outstanding in terms of bank loans is only ₹225 crore today and, in the next three years, the business plan factors in payment of all spectrum dues,” Birla said.
No Clarity on How these Payments will be Cleared
Vodafone Idea has not yet given any clearance over how these payments will be cleared. The telco is required to pay about Rs 7,000 crore in FY27, Rs 15,000 crore in FY28, and Rs 27,000 crore in FY29. The cashflows of the telco need to improve tto ensure that it can process these heavy payments and still be able to go for the growth it is targeting. As of FY26, Vi generated a cashflow of Rs 19,411 crore.
The telco has been able to now add new customers for consecutive months as per the TRAI (Telecom Regulatory Authority of India) data. Vi is targeting a Rs 45,000 crore capex (capital expenditure) to expand 4G coverage and rollout 5G in the next three years. All of this would require the telco to raise funds fast from the market, and the banks. The coming quarters will determine if Vi will actually be able to uphold its promises or not. Keep reading TelecomTalk to stay updated with the telecom and tech updates in India.
