Vodafone India may sell its Rs 1200-cr worth data center to reduce debts

Vodafone India may sell its data center, built at a cost of Rs 1,200 crore, in Navi Mumbai, to further reduce its debt, even as the British parent of the company converted already converted debt worth Rs 47,700 crore to lighten the balance sheet, Economic Times reported.


Vodafone Group has decided that its Indian subsidiary would divest all non-core assets, including the data centre, the report said, adding that “two strategic companies are interested in buying it out but at cost for Vodafone.”

“The data centre is now seen as a cost centre which won’t increase (Vodafone’s) appeal, but in partnership with a bigger strategic could mean stick enterprise business,” a source was quoted as saying by the publication.

The data center hasn’t been launched commercially by the country’s second largest telecom operator, which in a statement to the publication said that it is currently in the process of gaining the requisite approvals. “We intend to launch the data centre shortly.”

The value of the facility however may increase after the commercial launch and could command a premium from buyers who are at the moment only offering to buy it at cost, another person told the publication.

The data center, commissioned under the former CEO Marten Pieters, was part of Vodafone’s strategic plan to get enterprise customers, especially the booming medium segment and startups. The facility is larger in capacity with better technology because it has no legacy and been geared for cloud services too.

The company already offers enterprise services to big and large enterprise through its enterprise arm, Vodafone Business Services (VBS). It competes with the likes of Bharti Airtel, BSNL, Reliance Communications, Tata Teleservices and Tata Communications that offer enterprise services in the country.

Vodafone has recently spent Rs20,280 crore for acquiring 4G airwaves in the just ended spectrum auction, which will further increase debt on its books. The telco is also preparing for its initial public offer.

Read more on:

Leave a Reply

Photo and Image Files
2 Comment threads
3 Thread replies
Most reacted comment
Hottest comment thread
4 Comment authors
geekNMLlSudhakarSANJIB BANERJEE Recent comment authors
newest oldest most voted

how can they sustain with tens of thousands of crores of debt for years together ? looks like they are cooking their books to avoid paying due taxes !


Only tax payers cannot live with debts. Not fraudafone which does not pay any tax.


By borrowing money and cash infusion from the parent company. And because the terms of the creditor agreement.


telcos other than vodafone with no rich parent are also deep in debt ! what about them


Sell full fraudafone india company

Recent Posts

PUBG Mobile 0.13.5 Update Starts Rolling Out in India, Brings New Rating Protection Cards

PUBG Mobile on Android and iOS will be receiving the 0.13.5 update starting today with a ton of new features...

BSNL Reintroduces 5GB Free Trial Broadband Plan for Existing Landline Customers

Being the largest broadband service provider in the country the state-led telecom operator Bharat Sanchar Nigam Limited (BSNL) has a...

Airtel Internet TV Allows Users to Watch Content from OTT Apps and Television Channels

Airtel Internet TV has been one of the innovative products launched by Bharti Airtel so far. As the name of...