Vodafone Idea Separates Fibre Network Assets Under Separate Entity Before Sale

In its run-up to raise money for operational costs and to better compete with telcos like Reliance Jio and Bharti Airtel, Vodafone Idea Limited has transferred its fibre networks assets to a wholly owned subsidiary. This segregation of the fibre network assets by the company will allow it to now engage in talks with potential buyers and will also fasten the transfer process once the deal is finalised.

vodafone-idea-tower-transfer

Asset Sale to Fuel VIL’s Capex Requirements

As per a note seen by ET Telecom and drafted by Bank of America Merrill Lynch “Vodafone Idea CFO Akshaya Moondra said the company has moved its fibre (assets) to a wholly owned subsidiary, and a potential sale would help release capital (into the core mobility business) and reduce future capex investment.” A brokerage firm also said that Vodafone Idea had shared plans of monetisation of fibre network assets recently in an analysts’ meet.

It was earlier this month that Vodafone Idea announced its plans of monetising its sizeable fibre network assets along with its plans of raising Rs 25,000 crore fund via equity infusion. Vodafone Idea will be taking this pathway to bump up its financials and to meet its capex needs and to boost 4G network coverage while competing with Reliance Jio and Bharti Airtel.

The newly merged telco posted its financials in the quarterly report with the quarter ending in September. The situation did not look good as the telco posted Rs 4,974-crore loss with an Ebitda (earnings before interest, taxes, depreciation and amortisation) margin of just 8.1%. On top of that, the telco stands under a staggering debt of Rs 1.15 lakh crore combined with its capex needs for expanding the 4G network.

Separation of Assets to Bring Operational Efficiency

Earlier this month, VIL chairman, Kumar Mangalam Birla had also met with top government officials to discuss a deferred payment timeline for the telco to ease the financials. As per an analyst at a leading foreign brokerage firm, the value of VIL’s fibre network asset has been estimated to be around $430-450 million, however, if VIL decides to commit to leasing the fraction of these assets for long-term, then the value of the assets might rise up to $550 million as well. Also, as per the report from ET Telecom, a large chunk of VIL’s fibre network assets are on inter-city routes spanning, 1,56,000 kms. This fibre network is mainly being used for backhaul, meaning connecting the core telecom network, to nodes and then on to the towers.

Representatives of Vodafone Idea have also remarked that the separation of fibre network assets would mean capex avoidance for the telco and would bring operational efficiency. Another investment firm, Motilal Oswal has said that VIL has hinted plans “to play a role in an independent fibre sharing entity in future to restrict incremental capex”.

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66 Comments on "Vodafone Idea Separates Fibre Network Assets Under Separate Entity Before Sale"

 

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AU(Airtel User)
November 28, 2018 8:09 pm 8:09 PM

This is just the start of vodafone idea getting sold out.
Shld happen soon so that there spectrum cn b better utilised with airtel or jio.

Kaushik IMA
November 30, 2018 12:52 am 12:52 AM

Please sell yourself AU before the Earth registers a loss on resources spent to give you a living….

Nikhil Mumbai-Pune
November 29, 2018 12:01 am 12:01 AM

Lol

Sunil kushwaha
November 28, 2018 5:13 pm 5:13 PM

Look here

Screenshot_20181128-120826_Speedtest.jpg
AU(Airtel User)
November 28, 2018 6:45 pm 6:45 PM

+1 sunil
Jio speeds r just out of reach for vodafone idea even on empty network.

Nikhil Mumbai-Pune
November 29, 2018 12:01 am 12:01 AM

We will see.

Abhishek UPE
November 28, 2018 11:21 am 11:21 AM

when world class 4g (5g,6g,7g,8g ready LoL) network, fully ip based network starts fooling u in the name 4g and gives u only 0.30 Mbps.. it’s much better to use a stable network i.e. Vodafone 4g

Screenshot_20181128-103039__01.jpg
Santosh
November 28, 2018 2:03 pm 2:03 PM

I am too getting great speed in idea.jio is at 0.30 Mbps all the time at my place.

Screenshot_20181119-055747.png
AKHILESH KR SHUKLA
November 28, 2018 7:56 pm 7:56 PM

THIS SPEED UPE? HOW… AS I KNOW VODA USING BAND 1(5Mhz) band 3(5Mhz)
how getting 60Mbps using 5Mhz?

in UPE i m getting max 30Mbps on Vodafone ,IDEA- & Airtel max 96Mbps With JIo

Abhishek UPE
November 28, 2018 8:10 pm 8:10 PM

@Akhilesh.. don’t you know that Vodafone already deployed band 41?

AKHILESH KR SHUKLA
November 28, 2018 9:47 pm 9:47 PM

NO, IN MY CITY NEVER SEEN ANY NETWORK ON BAND 41
vodafone band 1,3 (total 10Mhz) …airtel band 3 (10Mhz),… Idea band 1,(5Mhz) jio 3,5.40(35Mhz)

Ide using Lowest 5Mhz but in speed its no 1 which is 20-30Mbps 24hour other fails daytime 1-2Mbps

Abhishek UPE
November 29, 2018 12:40 am 12:40 AM

which city? Btw here in Lucknow they already deployed band 41.. getting awesome speed 50 Mbps+ even during peak hours

Nikhil Mumbai-Pune
November 29, 2018 12:02 am 12:02 AM

Might get deployed soon.

AU(Airtel User)
November 28, 2018 6:46 pm 6:46 PM

Santosh seems everyone in ur area hv ported out of idea.

Nikhil Mumbai-Pune
November 29, 2018 12:02 am 12:02 AM

Lol

Nikhil Mumbai-Pune
November 28, 2018 3:21 pm 3:21 PM

Location?

SACHIN
November 28, 2018 6:49 pm 6:49 PM

egypt kairo

Kaushik IMA
November 30, 2018 12:53 am 12:53 AM

Yes I m getting 5.5G speed on Airtel in Cameroon…..

Rajnish | Agra
November 28, 2018 1:39 pm 1:39 PM

lol I’ve been seeing you posting Vodafone speed screenshots in every 3rd 4th article.

Bhai ek bar mein samajh aa gya sabko that you’re getting good speeds, but posting it repeatedly makes you look like an agent.

AU(Airtel User)
November 28, 2018 6:47 pm 6:47 PM

+1 rajnish

Nikhil Mumbai-Pune
November 28, 2018 3:22 pm 3:22 PM

His intention is too show how choked Jio is. Nothing else. And it’s continue to remain same.

Abhishek UPE
November 28, 2018 3:22 pm 3:22 PM

bhai mujhe to ye world class fully ip based 4g (5g -20g ready ) network hi nhi smjh aya..ghar se 100 meter pe sabse paas tower Jio ka laga hai.. balcony ke samne dikhta hai.. uske baad 4+ ( CA ) likh ke bhi aata hai.. fir bhi speed 0.30 Mbps kaun deta hai bhai..

Arka
November 28, 2018 7:07 pm 7:07 PM

Can u post a ss of jio speed test?

Abhishek UPE
November 28, 2018 8:15 pm 8:15 PM

@Arka.. already posted.. but look once again.. brother using Pocof1 shared hotspot for jio speed test

Screenshot_20181128-143551__01.jpg
SACHIN
November 28, 2018 6:49 pm 6:49 PM

bhai same same situation with me…avoid is best

Jagmohan Rattan
November 28, 2018 1:29 pm 1:29 PM

Does UPE represent all india ? I think you never go out of your home town thats why keep on posting same screen shot of that area only again and again.

AU(Airtel User)
November 28, 2018 6:48 pm 6:48 PM

+1 jagmohan very well said all vodafone idea fanboys r like tht only.

Nikhil Mumbai-Pune
November 29, 2018 12:03 am 12:03 AM

Lol

Kaushik IMA
November 28, 2018 7:25 pm 7:25 PM

AU

All u talk about is Delhi and u don’t even live in Delhi.

Better not talk about others!

Abhishek UPE
November 28, 2018 3:54 pm 3:54 PM

i am not a solo traveller dude.. why should i care about rest of India..? Lucknow is my hometown which is in UPE and village is in Ambedkar Nagar district .. and for these two places (distance 200kms approx) where i travel most often , Vodafone works absolutely fine for me.. Out of UPE (once of twice in a year) my secondary number Airtel works fine..

Nikhil Mumbai-Pune
November 28, 2018 3:23 pm 3:23 PM

Lol anything.

tri_vis
November 28, 2018 12:26 pm 12:26 PM

Bhai, u r frustration is justified at u r location, but another user may get best speeds on JIO at different location, so don’t generalize u r experience.
Look at ss for speed at my location on JIO. (Today’s ss, old haVing 50 Mbps speed which was posted on another post here in TT).
Device is RN5pro.

but I never claim that JIO is good at every place. NO OPERATOR IS GOOD AT EACH AND EVERY PLACE..

Think about it bro.

Screenshot_2018-11-28-11-51-26-766_org.zwanoo.android.speedtest.png
AU(Airtel User)
November 28, 2018 6:50 pm 6:50 PM

+1 trivis
but u must understand that they r vodafone idea unpaid fanboys n only they beleive in there heads that its best

Nikhil Mumbai-Pune
November 29, 2018 12:03 am 12:03 AM

Lol

Kaushik IMA
November 28, 2018 7:26 pm 7:26 PM

Ooh tri_vis is getting good speeds on cheap Chinese handset. What’s wrong AU? why r u agreeing now?

U seem desperate for attention…. Lol

tri_vis
November 29, 2018 2:30 pm 2:30 PM

What’s this with cheap chinese phone?
Point is experience with JIO’s speed at my place. I posted Vodafone’s soeed test also having satisfactory speed and Airtel’s also with good speed ( Airtel speed was much better then JIO before Diwali.
But nowadays JIO beats speeds of Voda and Airtel by increasing 72 new towers and on old towers are being upgraded.

Kaushik IMA
November 29, 2018 9:46 pm 9:46 PM

Tri_vis

Airtel User hates cheap Chinese phones because they knocked out lenovorolla from the market

Check out his posts on Chinese brands and have a great laugh! 😀

Nikhil Mumbai-Pune
November 28, 2018 3:24 pm 3:24 PM

At your place,everything is good. At his place,it’s not as simple as that. I don’t know why everyone is making such a huge issue out of it.

AU(Airtel User)
November 28, 2018 6:52 pm 6:52 PM

nikmumpun LoL bete sach kadwa hota h isiliye tumhe issue dikhta h fanboy kahike.

Nikhil Mumbai-Pune
November 29, 2018 12:04 am 12:04 AM

I have been to Gujarat this September. From Vapi to Udaipur, everything works superfine.

Chetan
November 28, 2018 12:14 pm 12:14 PM

No body is sharing such high speedtest results of Vodafone idea except you . That means to say only YOU are getting such speed from that lucky tower of vil … Do you think is it helping others in anyways ????? Come out of igloo of yours and talk something else.

BRC
November 28, 2018 11:16 pm 11:16 PM

Vodafone speed

Screenshot_2018-11-28-23-12-18-720_org.zwanoo.android.speedtest.png
Abhishek UPE
November 29, 2018 9:54 am 9:54 AM

@Chetan.. see @BRC is getting good speed even during peak hours..n yes it’s Vodafone 4g

AU(Airtel User)
November 28, 2018 6:55 pm 6:55 PM

+1 chetan

Abhishek UPE
November 28, 2018 2:41 pm 2:41 PM

See Jio-Pio

Screenshot_20181128-143551__01.jpg
Abhishek UPE
November 28, 2018 2:34 pm 2:34 PM

Hello Chetan.. nobody is bashing VIL as much as you do.. Jio tower is hardly 100 meters away from my house, the nearest tower of any operator still indoor coverage sucks.. latching most of the time to Band 5 only, CA implemented tower n getting 4+ signal but nothing works when it comes to data speed.. Jio sucks in my village too.. u r unhappy with VIL, u criticize them .. i am unhappy with Jio, i’ll also criticize them.. simple

Chetan
November 28, 2018 3:28 pm 3:28 PM

@abhishek, learn the art of critcising because I see lot folks giving you back above…

AU(Airtel User)
November 28, 2018 7:01 pm 7:01 PM

+1 chetan, they r vodafone idea unpaid fanboys u must understand it.

Nikhil Mumbai-Pune
November 28, 2018 3:25 pm 3:25 PM

+1

Kaushik IMA
November 28, 2018 1:43 pm 1:43 PM

Chetan

Again and again I find you don’t have any pan India experience.

I do get 50 Mbps on idea but of course not inside city. You should not make blanket statements like nobody is getting etc.

Theoretically I have seen 65 Mbps on Airtel too but it’s not a daily phenomenon.

I have not found jio unusable but on average it is lower than the others except BSNL/MTNL.

Ravi
November 28, 2018 3:46 pm 3:46 PM

@kaushik Why are you behind Chetan always. He never gets behind you or criticise you… He talks sense as I see in other posts.

Kaushik IMA
November 28, 2018 5:46 pm 5:46 PM
@Ravi The reason is, Chetanbhai is like a loose cannon, he talks sense but with limited perspective. I have been reading the posts for long and I can sense bias when I see it. Moreover, the reason I am suspicious is that he tends to get aggressive if anyone debates him. This is not an indication of a honest opinion. Check his past posts where he turns to aggressive rants and insults when cross questioned. While anger in heat of the moment is justified, one must also be large hearted to accept his own flaws. Earlier he made a comment… Read more »
Abhishek UPE
November 28, 2018 6:05 pm 6:05 PM

+100 @Kaushik

Chetan
November 28, 2018 3:25 pm 3:25 PM

@Kaushik, my point is regarding why others are not sharing vil speedtest screenshot when they share for Airtel and jio. And infact I had asked it earlier 1 month back and people replied they don’t get that kind of speed anymore on vil. Yes exception can be there as you said on highways etc.. but even then people don’t share it… So read my comment before jumping the gun. Are you jealous of me and things are write????

Kaushik IMA
November 28, 2018 5:50 pm 5:50 PM
Chetanbhai I already stated it’s not a normal case. That need not mean it’s an abnormal case. Please take multiple perspective or probabilities in mind when making statements in blanket manner. I was like u once, I had lot of disdain and mistrust towards some companies…. Now I realise they are all working towards market demands and you can’t please all with one approach anyway…. So maybe I think Airtel is horrible but it’s not going to change the reality of 300+ million largely satisfied users…. If I have problem I just state it….its malicious to wish or say things… Read more »
Chetan
November 28, 2018 6:46 pm 6:46 PM

@kaushik, I understand where you are coming from but fact is fact. If fact hurts people then be it. I don’t cook stories, my comments are backed by numbers and info. Ok I can be mute spectator here but I cannot write rosy picture because the connection from same company is used by you. If people revolt here then I will just stop sharing things…

Kaushik IMA
November 28, 2018 7:23 pm 7:23 PM

Then chetanbhai

Your facts may be non facts too, you need to accept that.

Abhishek UPE
November 28, 2018 5:07 pm 5:07 PM

@Chetan.. so ur problem is why i am praising Vodafone always.. Oh! come on man.. because it is working absolutely fine in my area.. n why should i care about other guys? see above comments someone is happy with Idea too .. ok, do me a favour… tell jio team to improve their services in my area.. i’ll start praising them.. till then you keep criticising VIL, I’ll bash Jio-Pio

Chetan
November 28, 2018 6:48 pm 6:48 PM

Better in your area??? But that job is suppose to be done by landline and broadband. Why you need mobile ?? If you roaming around you need mobile and better service provider who service you most of the places compared to others…

Kaushik IMA
November 28, 2018 7:48 pm 7:48 PM

“But that job is suppose to be done by landline and broadband. Why you need mobile ?? If you roaming around you need mobile and better service provider who service you most of the places compared to others…”

Read that again Chetanbhai and then understand that again you have made a logical error. 🙂

Nikhil Mumbai-Pune
November 28, 2018 3:25 pm 3:25 PM

+1

SACHIN
November 28, 2018 12:51 pm 12:51 PM

i get 63mbps on vdfn on b41….and always abve 50mbps..

Nikhil Mumbai-Pune
November 28, 2018 3:25 pm 3:25 PM

+1

Nikhil Mumbai-Pune
November 28, 2018 12:11 pm 12:11 PM

This will be even better and worse respectively in 2019.

NTR
November 28, 2018 11:31 am 11:31 AM

Abishek

Good you can stay with Voda

No one stop to you

Nikhil Mumbai-Pune
November 28, 2018 3:26 pm 3:26 PM

+1

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