Vodafone Idea Expects Government to Step In and Support The Telecom Sector

Beleaguered telecom operator Vodafone Idea Ltd (VIL), which provides services under the ‘Vi’ brand, expects the government to step in and support the sector.

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Vodafone Idea Chairman, Himanshu Kapania, said in a letter to shareholders that the company is hopeful for the government to provide some sort of relief.

Kapania further added that Vodafone Idea is hopeful that government will support its aim to make a reasonable return on the massive investments it has made.

Debt-laden Vodafone Idea Ltd (VIL) is hopeful of the industry getting government support to tide over the present crisis, even as the telecom operator continues to focus on 4G services.

Kapania, who took over as Chairman following the resignation of Aditya Birla group Chairman Kumar Mangalam Birla from VIL’s board in August 2021, did not specify the nature of support the industry was expecting from the government.

The industry, reeling under high debt, had earlier sought financial reforms from the government, including a slashing of levies, doubling the tenure of auctioned spectrum holdings, and a 7-10 year moratorium for spectrum payments.

VIL, which was formed after the merger of Vodafone India with Idea on August 31, 2018, has a subscriber base of 255.7 million (on VLR) with a subscriber market share of 25.7% as of March 31, 2021.