Vodafone Group Transfers $200 Million to Vodafone Idea

Published by
Shrijan Soni

Vodafone Idea was the facing massive financial burden after the supreme court directed telcos to clear their AGR dues. Since the threat of Covid-19 was increasing, Vodafone Idea was facing distress as the government of India announced the lockdown period to combat the deadly Virus. Honouring the terms of contingent liability mechanism Vodafone Group transferred payment of $200 Million to Vodafone Idea for clearing off financial liabilities and maintain liquidity position of the firm, as reported by ET Telecom.

Vodafone Idea,Vodafone Group,Vodafone India,Idea Cellular,Vodafone Idea AGR Dues

Vodafone Group Made Payment Under CLC terms

Vodafone Group released the whooping amount to Vodafone Idea under the contingent liability mechanism under which Vodafone Group must make payments to Vodafone Idea in the case where payments made by Vodafone Idea exceeds the payment made by Idea cellular. The CLM clause was made at the time of the merger between Vodafone and Idea in which payment was due in September 2020.

Payment by Vodafone Group will Aid Vodafone Idea

Vodafone Idea is already facing massive financial burden as the telco is offering benefits to its prepaid subscribers amidst the lockdown period. As the subscriber growth is slowed, Vodafone Idea was facing trouble to maintain the liquidity position of the company. In difficult times, payments by Vodafone Group will aid the telecom operator to manage the cash position and provide prepaid benefits and services to subscribers in the second phase of the lockdown period. Vodafone Idea is already doing its part to ensure seamless connectivity in the lockdown period. After the government extended the lockdown period until May 03, 2020, Vodafone Idea increased the validity of free incoming facility until May 03, 2020, in nearly 90 million subscribers account. Also, the payment made by Vodafone Group will aid the 300 million customers of Vodafone Idea.

Vodafone Idea Cleared Rs 1,367 Crore Quarterly AGR dues

Vodafone Idea recently cleared Rs 1,367 towards Spectrum Usage Charge and license fees for January to March Quarter. Vodafone Idea has to pay annual spectrum of worth 1.7 billion dollars which will be increased to 2 billion dollars after two years because of the interest incurred. Since the government did not entertain the payment date extension request, Vodafone Idea cleared the Spectrum Usage and License fees.

Shrijan Soni

Shrijan loves the process of creating content in various verticals, whether it be words, sounds or videos. He's also inclined towards digital marketing and tech industry developments. The art of creation always triggers his interest.

Published by
Shrijan Soni

Recent Posts

OnePlus 11 Concept Phone to Arrive at MWC Barcelona 2023

OnePlus 11 5G was announced at the Cloud 11 event in New Delhi on February…

Nokia is Extending Fiber Broadband Equipment Manufacturing in India

Nokia, a global telecom gear and equipment maker, has announced that it will extend manufacturing…

Airtel 5G Plus Now Available in Dharamshala, Mandi and Baddi

Bharti Airtel launched 5G Plus network services in three more cities of Himachal Pradesh on…

Airtel Gets all Fibre Assets of Telesonic after Merger

Bharti Airtel Limited owned subsidiary Telesonic Networks Limited has merged with Airtel. The merger took…

Key Point Opens Data Center in Eastern Siberia

Russian data center Key Point announced the launch of a new data center in Primorsky…

Airtel to Target Top 150 Cities and Towns for 5G Expansion and Postpaid Growth

On Wednesday, Bharti Airtel, India's leading telecommunications provider, said it is rapidly expanding 5G to…

BSNL 4G and 5G, How it Can Make Huge Difference

Bharat Sanchar Nigam Limited (BSNL) has been working to roll out indigenous 4G for a…

This February, Don’t Miss These Movies and Web Series on ZEE5

We're all anticipating the best entertainment as February gets underway. OTT platforms are ready to…

5G Near Airports: DoT Talking with DGCA and MCA

5G is not operational around airports in India. There's a big reason behind that. There's…