Vodafone Will Continue to Operate in India, Assures CEO in Apology to Govt

Published by
Arpit Sharma

The financial situation of Vodafone Idea in the industry is not the best one in the telecom industry. The telecom operator has been neck-deep in dues and increasing the struggle for the telecom company is the churn of subscribers who are porting out of their Vodafone Idea SIMs. If this was not enough for the company, there came the issue of Adjusted Gross Revenue (AGR) as ruled by the Supreme Court and put on an additional burden on the shoulder of the former largest telecom company of India. Now in the wake of these happenings, we saw some strong remarks coming from the CEO of UK based Vodafone Plc, which also owns a major stake in the Vodafone Idea

Ltd telecom company. In a new report as brought forth by ET Telecom, the Vodafone CEO has taken a soft footing and issued an apology to the Indian government regarding the Vodafone Idea venture and has noted that his remarks were distorted.

Govt Officials Express Displeasure Over Statements of Vodafone CEO

Vodafone CEO, Nick Read wrote a letter to Prime Minister Modi, the telecom minister Ravi Shankar Prasad and some other senior government officials. In his letter, Read noted, “The coverage in India has been distorted, and I apologise for the impression that the coverage conveys. It doesn’t accurately represent my comments.” Adding on to this, Read also highlighted that the company still has desires to continue operations in India and it also appreciates the committee of secretaries that have been set up to look into potential remedies and their considerable effort. The effort which Read has talked about will bring financial relief to the telecom companies and will be a huge benefit to Vodafone Idea, along with easing things for Bharti Airtel.

Vodafone Plc to Remain Invested in India: CEO

As per a senior official, Read’s letter came after some of the top government officials expressed disapproval and displeasure on Read’s tone in the letter and thought that it was strongly worded. The new letter from Read said, “I would like to express my gratitude to the Indian government for designing a relief package in the light of the recent AGR (adjusted gross revenue) judgment and the financial stress the telecom industry is undergoing.” He also added that on coming to India and on getting to engage with the government, he found that there is a deep desire on the part of the Indian government to help. However, with this, Read also added clarifying that what he wanted to point out was that the situation in the Indian telecom market has reached a critical point. With this, he also said that he wants to engage with the Indian government in the coming days.

Government Proposes Some Relief for Telcos

The Indian government, on the other hand, has proposed cutting the license fees from the present rate of 8% of AGR down to 5% and as for the spectrum dues, the government is ready to give a two year moratorium period of to the telecom operator for paying up these dues. It is noteworthy that Vodafone Idea owes a total of Rs 24,000 crore to the government, which is the highest that any telecom operator owes.

Read’s letter has also said that the company strongly believes in the country’s potential, its telecom sector and the transformative power of the telecom industry for the citizen. Now only this, but the operations of the company are also closely aligned with the Digital India vision. He also said that India remains a key market for Vodafone and it remains invested in it.

Arpit Sharma

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

Published by
Arpit Sharma

Recent Posts

Xiaomi Was Ahead of Apple, OnePlus, Vivo and Oppo in India in Q1 2021

The smartphone market in India is one of the most competitive spaces to be in…

May 10, 2021 5:00 pm

Realme Narzo 30 Unboxing Video Goes Live Ahead of Official Launch

  Realme launched its Narzo 30 Pro and Narzo 30A smartphone in the Indian market…

May 10, 2021 4:31 pm

BSNL 4G Extended to New Rural Parts of India

Bharat Sanchar Nigam Limited (BSNL) is trying to grow its 4G services in the country…

May 10, 2021 3:59 pm

POCO F3 GT Appeared on Global E-Commerce Site Ahead of Official Launch

Xiaomi is a smartphone manufacturing brand that is unknown for its wide range of smartphones…

May 10, 2021 3:06 pm

Oppo E-Store Official in India Now, Check Out Offers

Oppo last month announced that it was going to launch an official e-store in India.…

May 10, 2021 2:00 pm

Redmi Note 10S Indian Variant Spotted on Google Play Console Listing

Redmi phones have gained quite some popularity in the Indian market with an exquisite range…

May 10, 2021 1:30 pm