Vodafone Group invests Rs 47,700 crore in India ahead of spectrum auctions

By September 22nd, 2016 AT 4:30 PM

Vodafone India, the country’s second largest telecom operator with 200 million users, said that it has received an equity infusion of Rs 47,700 crore from its parent company, Vodafone Group, in the first half of the current fiscal.

telecom-india

The carrier claimed that the equity infusion via foreign direct investment (FDI) is largest ever FDI infusion in the country.

“This equity infusion of Rs 47,700 crore, which we believe is the largest ever in India, will enable Vodafone India to continue its investments in spectrum and expansion of networks across various technology layers,” Sunil Sood, MD & CEO, Vodafone India, said in a statement.

Vodafone India has 22.5% revenue market share with over half of the customers- 107 million- coming from rural India.

“We have successfully increased our revenue market share by 0.6% in the first quarter of current fiscal. experience to our hundreds of million customers,” he said.

Sood said that Vodafone is building one of the most modern and scalable telecom networks to deliver connectivity for both voice and data and to support technologies.

The move coincides wi­th Reliance Jio’s ent­ry, which is expected­ to shake up the dyna­mics in the market. ­Further, the developm­ent comes at a time w­hen the telco prepare­s for the upcoming sp­ectrym auction, where­ is likely to bid agg­ressively to increase­ its 4G spectrum hold­ings.

Vodafone, which has a­ total 302MHz spectru­m, may spend as much ­as $2 billion on acqu­iring spectrum. It ha­s 4G spectrum in nine­ of the country’s 22 ­circles, and lags beh­ind Jio and market le­ader Bharti Airtel’s ­pan-India holdings.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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MaheshDGuptakirti DelhiNMLlShayan Recent comment authors
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Mahesh
Mahesh

Vodafone postpaid sucks… Can’t find a decent callertune.. Also Got two types of unwanted VAS activated 🙁 Waiver has been given but still this problem occurs with Vodafone internet :@

Looks like airtel is a better option.. Karnataka circle..

DGupta
DGupta

As far as I understood, Vodafone UK has not given Voda india any new money. They have simply reclassified already existing loans of 47,700 Crores to Voda India as equity. This is gives them a great headline, but unless they add more shareholders it doesn’t matter to anyone from a corporate structure perspective. It helps Voda India indirectly. It improves their balance sheet position by showing a far better debt:equity ratio, allowing them to raise fresh debt from banks on better terms. The high debt would have made the company look financially weak especially after spending more money to buy… Read more »

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