Vodafone CEO Says Situation Critical, India Venture Risks Liquidation; Airtel and Bharti Infra Among Bidders for RComm Assets.

Situation critical, India venture risks liquidation, says Vodafone CEO. Airtel and Bharti Infra among bidders for RComm assets.

 

TELCO TALES

Situation critical, India venture risks liquidation, says Vodafone CEO.

Dire Straits: Vodafone's India venture is at a crossroad. Its CEO has said that unless the government eases off on some of the demands on mobile spectrum fees, the company risks liquidation. He said unless there's a reduction in spectrum fees and more leeway regarding repayment of debts, the situation would turn critical.

 

The company - which is based out of the UK - also faces the predicament of AGR licensing fees to the tune of $4bn, which the Supreme Court recently directed telcos to pay to the government. Vodafone Idea - of which Vodafone owns 45% - already has $14bn in debt and a market presence threatened by Reliance Jio, whose arrival in the Indian telecom scene set of a period of crippling price wars. BBG

 

Airtel and Bharti Infra among bidders for RComm assets.

Meanwhile: Reliance Communications, Vodafone's rival, has reason to worry too. It has secured a total debt of about INR33,000cr and is going through insolvency proceedings. And its assets up for sale have received bids from three firms - including Bharti Airtel and Bharti Infratel. Mukesh Ambani's Reliance Jio Infocomm itself has not placed its bid and has sought a 10-day extension. Hindu BusinessLine

 

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