Hotness Vodafone Exit From Indian Market Now in Talks a...

Hot Deal Vodafone Exit From Indian Market Now in Talks as Merged Company Continues to Lose Subscribers

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Vodafone Exit From Indian Market Now in Talks as Merged Company Continues to Lose Subscribers:

There is reportedly a buzz in telecom circles that Vodafone is ready to “pack up and leave any day now” as operating losses mount in the joint venture company, Vodafone-Idea.

The telecom regulatory world is abuzz with feverish talk that the imperilled telecom operator, Vodafone, is ready to exit its India operations.

An email questionnaire was sent by IANS to a Vodafone-Idea spokesperson in India. IANS, in turn was asked to direct the queries to Ben Padovan, Group Head of Corporate Communications, Vodafone Group Plc.

Vodafone group did not respond to queries for two days till the time of printing.

There is a buzz in telecom circles that Vodafone is ready to “pack up and leave any day now” as operating losses mount in the joint venture company, Vodafone-Idea, loss of lakhs of subscribers every month and a dwindling market capitalization which is hurting any fresh fund raising.

On Wednesday, Vodafone-Idea issued a clarification on the claim that Vodafone Idea has approached its lenders for debt recast.

“There has been reportage in some media alleging that Vodafone Idea has approached its lenders for debt recast. We categorically deny and dismiss this as baseless and factually incorrect. We have not made any request for debt recast to any lender or asked for reworking of payment terms. We continue to pay all our debts as and when these fall due,” the company said.

The material event for the company has been the recent Supreme Court judgement on AGR under which Vodafone Idea will have to pay around Rs 28,309 crore in three months time.

Following the sharp fall in shares, Vodafone-Idea has clarified to stock exchanges on October 25 and again on Tuesday, this week, that “SC judgement represents a significant event with respect for the company (sic)”.

“We cannot presently comment on the correctness and completeness of the aforesaid figures. The company is studying the judgement and we will evaluate our next steps,” it said.

“The Judgement has financial implications, which we are reviewing. We will engage with the DoT in order for it to consider granting relief, including a waiver on interest and penalties.”

Following the verdict, Vodafone-Idea stock hit a 52-week low of Rs 3.66 and traded at Rs 3.86 on Wednesday morning. Its market capitalization is a measly Rs 11,091 crore, while the investments have been several billions of dollars.

In a media statement on the AGR verdict, the company said, “Vodafone Idea is extremely disappointed by the Hon’ble Supreme Court judgment on the Adjusted Gross Revenue (AGR) case”.

“We will study the ruling as soon as it is available, along with our legal advisers, to determine next steps. If there are technical or procedural grounds for doing so, this could include a Review Application,” the company said.

“Clearly this judgment has significantly damaging implications for India’s telecom industry, which is already reeling under huge financial stress and is left with only four operators.

“Significant investment of several billion dollars has been made in creating world class networks. Today’s order has huge impact on two private operators while most of the other impacted operators have exited the sector. We urgently request that the government engage on this matter in order to find ways to mitigate the financial stress for the industry”, the company said.

In another setback, Vodafone-Idea announced last week that in regard to the merger of Indus Towers, in which it holds 11.15 per cent equity, with Bharti Infratel, it has not been possible to meet the conditions, including DoT approval under the FDI regulations before the target date of October 24.

The parties have entered into an agreement to extend the date by two months to December 24.

Vodafone Idea will receive a lower cash payment based on the fall in the share price of Bharti Infratel, movements in net debt at Bharti lnfratel and Indus.

57 Comments  |  
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Cropped27069613
Deal Subedar
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@DaBomb

Baba ji
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Just about 2 hours ago, I read this news.
So there will be only 2 operators… if this comes true… Airtel and Jio.

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xuseronline wrote:

Just about 2 hours ago, I read this news.
So there will be only 2 operators… if this comes true… Airtel and Jio.

BSNL flushed

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xuseronline wrote:

Just about 2 hours ago, I read this news.
So there will be only 2 operators… if this comes true… Airtel and Jio.

And the mighty BSNL unless you already factor it as part of Jio toungueout

Dont waste my time
Deal Subedar
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Wtf! I was thinking to move back to them just next week! Anything but Jio, please.

Ws ferrari f1 front 1600x1200
Deal Newbie
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Man, Only Vodafone signals are good at my home. airtel and jio are pathetic. if this happens, I may have to sell mobile phone and go for landline.

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pappupaltan wrote:

Man, Only Vodafone signals are good at my home. airtel and jio are pathetic. if this happens, I may have to sell mobile phone and go for landline.

then what will happen to cashbacks loots if landline comes back to power

rolleyes
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Deal Cadet
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Expected Tha… Voda Khud Ne Hathiyaar Dal Dega laughing
Jaldi Jaldi Sab Voda-Idea Sim Ka Balance Khatam Kr Lo Warna Aircel/Reliance Jaise Haal Hojayga pensive

Mera Voda Mein Around 1.5K Balance Pada Hai…4G Data Use Kr K Khatam Krna Hoga rolleyes

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pappupaltan wrote:

Man, Only Vodafone signals are good at my home. airtel and jio are pathetic. if this happens, I may have to sell mobile phone and go for landline.

Same situation here. For Airtel I will need to invest in a hotspot as signals and consequently speeds are good only if kept near windows.

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santosh_blr wrote:

And the mighty BSNL unless you already factor it as part of Jio toungueout

BSNL has already been destroyed systematically over the last 6 years, to the benefit of Jio

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Deal Subedar
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I had predicted couple of days back that there are possibilities of a merger of Airtel and Voda-Idea

Dont waste my time
Deal Subedar
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pappupaltan wrote:

Man, Only Vodafone signals are good at my home. airtel and jio are pathetic. if this happens, I may have to sell mobile phone and go for landline.

Same. In my place also only Vodafone signal is great. Airtel is terrible, Jio is in between. Also even outside my living area Vodafone is good because where there are no 4G service, like in a subway (transportation system) or in a moving train or bus, you can easily change to 3G on Voda and have service, whereas in Jio you are stuck with 4G only and therefore no service! That’s just pathetic! You always should have the fallback option to 2G/3G.

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Deal Subedar
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A bad move from all existing operators in recent days. rolleyes cry

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Source? sunglasses

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Deal Newbie
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Really sad news for telecom industry

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Batman_X wrote:

@DaBomb

Well i kind of understand now. That was the reason of VAS activation spree, they were trying to recover some fund to pay dues. Thanks for tag.

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so now I have a reason to ditch sadaphone

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Deal Subedar
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join bsnl or JIO

not the thug cartel

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rogerthat wrote:

join bsnl or JIO

not the thug cartel

BSNL can be quite good only if these government BABUS do their job honestly without torturing customer or asking for bribe.

Cropped27069613
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rogerthat wrote:

join bsnl or JIO

not the thug cartel

so u finally stopped using your airtel sim, right ?

75pe
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So No more doggy ads during IPL. Peace.

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Simbha3 wrote:

So No more doggy ads during IPL. Peace.

Hope you see airtel’s 4g girl in between from now grinning

1609890 632726593442525 264821950 n
Deal Subedar
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Typical clickbait news based on absolutely nothing just pure speculation by some random employee.
Based on absolutely nothing biggrin
“There is reportedly a buzz in telecom circles”
lol
Where are those circles ? Who is talking about this hypothetical buzz ?
Any quotes from any relevant corporate officer/employee of Vodafone?
Any other citings from any relevant stakeholder ?
Answer is no.
These idiots are just putting things out there dressed up as news.
Sure things are hard for telecom giants right now after the recent sc ruling and ongoing fierce competition but India is too big of a market to just pack up and leave. And it’s only going to grow big from here.
Bearing out and embracing though customer acquisition phase and heavy discount phase seem like a no brainer to me.

75pe
Deal Subedar
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mastervijay wrote:

Hope you see airtel’s 4g girl in between from now grinning

https://cdn0.desidime.com/attachments/photos/593144/medium/6236545a918876f381bccbb51e468f2b2e93254bb78ad3857c1925890f2c86a7aedbf3e.jpg?1572454913
Baba ji
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mastervijay wrote:

Hope you see airtel’s 4g girl in between from now grinning

Pug is better than this girl biggrin

Roger federer photos 9 150x150
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Batman_X wrote:

so u finally stopped using your airtel sim, right ?

i am using it , i will port to jio after recharge ends.

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Deal Newbie
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JIO has only 4G signal , so it eat more battery and phone is hot all the time; also sometime i find in vodafone 3G signal goood then 4G and switch to that but no such option in JIO;

on the positive side JIO is the only operator on which 1860____ helpline number of credit cards are free

L4ud4kxe 400x400
Deal Subedar
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Idea ka kya hoga kalia

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