Vodafone Idea open to anything that might help it survive
Reports from India suggest beleaguered telco Vodafone Idea is considering a share sale and even investment from Verizon to keep it alive while it pays off the government.
Bloomberg Quint reckons Vodafone Idea is looking to raise a cool $1.5 billion, following the final Supreme Court ruling, compelling it to hand over many times that much in historical license fees to the government over the next decade. The company has repeatedly warned that being forced to pay up might drive it out of business, but it looks like it’s not ready to throw in the towel just yet.
The Bloomberg piece says a share sale may form part of the fund-raising strategy and also talks about it trying to get US investors interested in taking a piece of the action, without naming any. Livemint, however, does and flagged up Verizon and Amazon as potential investors. Google had previously been rumoured to be in the running, but Vodafone Idea is apparently only interested in working with companies whose name ends in ‘zon’ these days.
All this speculation seems to have given Vodafone Idea’s share price a decent boost, which is interesting since both moves would presumably involve diluting the stake of existing shareholders. One conclusion to be taken from this is that a high probability of bankruptcy had been priced into the shares and, now that the company is showing a bit of fight, investors are a bit less pessimistic.
Vodafone now Vodafone idea is deducting charges , sending unwanted messages https// etc and after clicking immediately charges are being debited, without availing any extra facility. Like this looting money.
Hi bit!!
I mean bot!!!
Is Vodafone now based in India ? What are we not being told. Why are we still paying for no service ?
Vodafone has been dealt a raw hand by the Supreme Court. Unfair, biased judgement.
I would stick my neck out for Voda nd Airtel the other player used unfair means to get market share .
They want 2G to be out which will be instrumental in connecting IoT devices which is connecting smart meter ,water meter,Vehicle tracking system, Animal tracking and what not ..India will have 100 crore plus IoT devices by 2028 ..
Also before telling that theh reduced call rates etc ..now they are only calling out saying it is unsustainable and Voda and Airtel are not allowing the rates to go up . Also they didn’t because govt supported idea of IUC reduction every call which originates from one service provider to other the originator network had to pay 14 paise till 2017 which was reduced to 6 paise ..which Jio wanted to become 0 ..when govt said no they got angry and asked for public to pay money on calls to other network (see the hypocrisy) refer to Google .
Now comes loss to govt and AGR ..they gave so many free connection ..AGR means you pay 8% of all charges to govt ,plus the loss of 18% of GST assuming ARPU of 200 on each number and let’s take 20 cr free connection for 12 months it means 12.5 k crore loss to govt ..