Due to the spectrum being very expensive in India, multiple times now, certain frequency bands have been ignored by the telcos during the auctions. Ravinder Takkar, talking to TOI, suggested that the government should allocate the unsold spectrum to the players at the market discovered price. This will help the companies with their plans of scaling networks throughout the country to meet the growing demand for digital consumption.
Takkar cleared that this is merely a suggestion and not something that Vi or he is advocating for. This is an option for the government to also boost its revenues as the telcos might be ready to pay market discovered prices for the unsold spectrum.
Takkar Says It Is a Myth that Vi is Being Kept Alive
When asked whether the revival of the telco is led only because of the revival package announced by the government, Takkar said that it is a myth that Vi is being kept alive. The Vi CEO added that there have been many ups and downs in the last few years and there is no doubt that the telco would come out stronger from here.
Vi has been unable to raise any funds from external investors for years now. The board of the telco had approved a fundraise of up to Rs 25,000 crore through both debt and equity in 2020 but apart from the Rs 4,500 crore which came from the promoters, the telco has not been able to raise any funds.
Vi is waiting for the government to pick up its equity stake in the company. The GoI (Government of India) will be picking up a 33% stake in the company against the Rs 16,000 crore-interest dues that the telco owed. This is the only roadblock left to be addressed before the telco can raise funds from external investors. Vi is very close to raising Rs 20,000 crore from outside investors, Takkar had said previously.
