It's known that Vodafone idea (Vi) is going through rough phases, but with the recent clearance of equity conversion by the Government of India, Vi got a short-term relief without facing bankruptcy proceedings soon. The Government's shareholding in Vi stands at 33.44% after the equity conversion and is the largest shareholder of the telco. But Government has only approved the equity conversion on the promise by the promoters to bring in investments and turn around the company into good form. Government will closely monitor Vodafone idea for the next three months, as per a report by ET Telecom.
Also Read: Govt Expects Vi to Rollout 5G Soon: Report
DoT to Monitor Vodafone Idea Closely
The Department of Telecom (DoT) is closely monitoring the ailing telco, Vodafone Idea, for the next three months, and the telco is expected to bring in the required funds needed for the survival of the company, enabling competitiveness in the market. The Government always wanted to have three private and one government telco for healthy competition and is making decisions in that direction only.
"The Telecom department hopes that Vodafone Idea will move very fast, and how it (equity conversion) translates into cash in the next three months is crucial," a senior government official said, adding that the telco can now raise funds.
Read More - Vodafone Idea Continues its 20 Month-Long Subscriber Losing Streak
"Obviously, we are doing what we have committed. Many discussions have gone by, and now we are supporting as we are the interested party too. We want the market to be vibrant and robust, and that was the purpose of the reforms. We would like the market to be a three-private player market," the official added.
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In addition, the Department of Telecommunications is also expected to send notices soon to Vodafone Idea, asking the company to provide a tentative date for making full payment of the License fee and Spectrum usage charges for the October - December quarter. The company is believed to have paid just around 10% of the statutory dues. Meanwhile, Vodafone Idea has recorded a milestone of 20 continuous months of wireless subscriber loss.
