Vodafone Idea Might Attract Outside Investors Following Tariff Hikes

Post the tariff hikes, Vodafone Idea’s stock has been soaring. One of the biggest boosts for Vodafone Idea’s future was the announcement of tariff hikes from Reliance Jio. With all the operators moving their tariffs up, there will not be that big a worry about subscriber market share to Vodafone Idea.

• Make Telecom Talk My Trusted Source
• 
• 

In the last few months, Vodafone Idea’s future has changed for the good. The telco firstly benefited from the relief measures announced by the government. Now, there are tariff hikes that will help with boosting average revenue per user (ARPU). On top of all this, the government is also working on the second set of reforms for the telecom sector.

Vodafone Idea Needs Cash to Invest in Networks

Vodafone Idea needs huge funding to not only pay off the debt but also be able to invest in its networks. Reliance Jio and Bharti Airtel are ahead of Vodafone Idea because both the operators have better cash resources and the ability to invest in networks more freely.

With all that has happened so far and what can happen in the future, there’s a big possibility that Vodafone Idea starts getting interest from outside investors. On multiple occasions, the telco has said that it is talking with potential investors. However, there’s nothing much has happened yet.

To really get the outside investors’ money flowing into the company, the promoters, including the Vodafone Group Plc of the UK and the Aditya Birla Group (ABG), needs to put their own money first. The outside investors will only feel confident in giving their money to the telco when the promoters show they can do the same and believe in the company’s future.