Vodafone Idea Has Accepted Four Year Payment Moratorium Option

Because of a ton of debt, dues and capex on its shoulders, Vodafone Idea wasn’t in the best position to make new investments for 5G.

Published by
Tanay Singh Thakur

Vodafone Idea

Vodafone Idea (Vi) has told the government that it will be opting for the four-year payment moratorium benefit on the dues. With this, Vodafone Idea (Vi) has become the first telecom operator in the country to accept the moratorium benefit from the government. According to an ET Telecom report, the cash strapped telco has further asked the Department of Telecommunications (DoT) about when it will receive the bank guarantees

back from the banks.

Four Year Moratorium on Payments Will Ease Cashflow Problems for the Company

Because of a ton of debt, dues and capex on its shoulders, Vodafone Idea wasn’t in the best position to make new investments for 5G. A negative cash flow, especially at a time when the company was losing subscribers, it was being speculated that Vodafone Idea might go out of business soon. But that is not going to happen anymore.

The government has ensured that the stress of statutory payments is lifted off from the telecom sector. Vodafone Idea also has the option of converting the accrued internet dues into equity for the government. The telco is yet to comment on whether it is looking to do it or not.

With the bank guarantees (BGs) not being a threat anymore, Vodafone Idea’s cash flow position is going to improve dramatically. The telco will be able to make more investments for developing 5G technology and improve network coverage.

Vodafone Idea is also looking to raise up to Rs 25,000 crores from outside investors. The telco is also expected to get money from its promoters in the near future. Promoters infusing capital further into the company will definitely improve Vi’s image. This will attract more outside investors. The telecom operators are further expected to go for tariff hikes soon and that will also help Vodafone Idea. The government is also working on a relief measure that will help with reducing litigation in the sector.

Tanay Singh Thakur

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Published by
Tanay Singh Thakur

Recent Posts

Oppo Reno7 Series First Batch Sold Out in 15 Minutes

The upcoming flagship from Oppo – Oppo Reno7 series was launched in China recently after…

Best Long Term Prepaid Plans from Airtel, Jio, Vi Today

After the tariff hikes, while the long-term plans are still available, they come for a…

Facebook Will Allow Users to Split Bills, Feature Already in Beta Testing

As the things are building up, Facebook might be bringing in a feature that will…

iPhone 12 Pro Available at an Amazing Price on Amazon

One of the most prominent players when it comes to online stores, Amazon has come…

Dish TV Android Box Features, Price Detailed

Dish TV, the second largest Direct-to-Home (DTH) service provider in India, offers an Android Box…

WhatsApp: How to Enable and Disable Disappearing Messages

If you didn’t already know, WhatsApp has brought in a feature using which the users…

MIUI 12.5 Enhanced Edition Now Available for Xiaomi 11 Lite 5G NE

In a recent development, Xiaomi 11 Lite 5G NE is apparently receiving its MIUI 12.5…

Why Do Telcos Want 5G Spectrum to Become More Affordable

After all that the government has done for the telcos in the recent months (announcement…

iPhone 14 Could Come With 3nm A16 Processor

Apple Inc’s chip supplier Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) has begun to test its…