Vodafone Idea on Monday announced it will increase mobile service rates from December 1 in the wake of ongoing financial stress. The debt-ridden company, however, did not disclose the range or details of the proposed tariff hike.
This comes after Finance Minister Nirmala Sitharaman on Friday stated that the government doesn't want any telecom company to shut operations.
Vodafone Idea Ltd (VIL) faces a liability of Rs 44,150 crore after the Supreme Court ordered that non-telecom revenues should be included in the adjusted gross revenue (AGR) of mobile phone service providers for calculation of statutory dues such as licence fee and spectrum usage charge.
Debt-ridden telecom operator Vodafone Idea on Friday said it is exploring to monetise data centres as part of the company's debt reduction plans.
Shares of Vodafone-Idea and Airtel got a massive boost after reports that Department of Telcom (DoT) may fix a floor price for data and voice tariffs. This has rekindled hopes that the embattled telecom giants will be able to withstand the price war caused by Reliance Jio.
"Nevertheless, the weakening financial viability of Vodafone Idea Aeven if the companies get a relief from the government on payment timeline and some potential license fee reduction in the future. We have assumed that Bharti will gain 40 per cent of VIL's revenues or subscribers, while JIO might garner a higher share of 60 per cent," Emkay said.
Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea on Thursday posted a colossal Rs 50,921 crore loss for the second quarter ended September 30, and said it is in the process of filing a review petition on the adjusted gross revenue matter.
Shares of Vodafone Idea and Bharti Airtel tumbled up to 21.6 per cent on Thursday amid reports that the DoT has issued a notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court.
A binding decision of the Supreme Court or High Court can be reviewed through a review petition on the ground of apparent error. Under the Supreme Court Rules, 1966, such a petition needs to be filed within 30 days from the date of judgement or order
British telecom giant Vodafone on Tuesday said its future in India could be in doubt if it is forced to pay thousands of crores in statutory dues following the Supreme Court ruling.
Vodafone announced that loss for the financial period of €1.9 billion primarily reflects losses in relation to Vodafone Idea post an adverse judgement against the industry by the Supreme Court.
Global telecom player, Vodafone has told Indian authorities that it will not provide more capital for its India business unless there are provisions allowing it to compete with Mukesh Ambani's Reliance Jio.
Similarly, on the National Stock Exchange (NSE), the shares closed at Rs 4.20 apiece, up 7.69 per cent. During the day, the stock touched a high of Rs 4.80, up 23.07 per cent. The company added over Rs 1,100 crore to its market capitalisation, which now stands at Rs 12,356.22 crore.
Billionaire Mukesh Ambani's Jio, which is also a member of COAI, has been contesting claims of the inability of telcos to pay the statutory dues, for which they ideally should have provisioned in accounts in view of a legal dispute.
British telecom giant Vodafone on Thursday said it will continue to stay invested in the Indian market and is seeking the government's support to tide over the current challenging times.
Vodafone Idea has denied reports in media that suggested that the company was exiting India from the rising tax liability and adverse Supreme Court judgment in the tax case.
Shares of the telecom operator slumped 8.66 per cent to Rs 3.48 apiece - its 52-week low - on the BSE.
Amid reports of it exiting the India market, Vodafone Idea has said that it will continue to pay all its debt and dues in a timely manner. Vodafone Idea dismissed speculations in certain quarters that nearly Rs 40,000 crore of potential statutory dues has compelled the company to explore a debt revamp as "baseless and factually incorrect".
The telecom regulatory world is abuzz with feverish talk that the imperiled telecom operator, Vodafone, is ready to exit its India operations.
As the telecom sector stares at a massive payout following a Supreme Court order, the government has created a Committee of Secretaries to work out a financial bailout package that may include lowering of spectrum charges as well as ending the era of free mobile phone calls and dirt cheap data.
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