Latest news with #VodafoneIdeaLtd
&w=3840&q=100)
Business Standard
25-06-2025
- Business
- Business Standard
Cosmic connection: D2D technology may redefine telecom rules in India
Direct-to-device (D2D) satellite connectivity would allow users to access satellite connectivity on existing 4G or 5G smartphones - no special satellite phone would be needed premium Surajeet Das Gupta New Delhi Listen to This Article By next year, mobile smartphone users in India could access a new technology that would allow them to stay connected even in areas with weak or no terrestrial network coverage — without changing their existing devices. This innovation is enabled by direct-to-device or direct-to-cell (D2D) services, where the smartphone gets connected through satellites, allowing users to make calls, send texts, or use data in remote areas. The first to announce its plans to offer this service in India is Vodafone Idea Ltd (VIL). Despite ongoing financial challenges, last fortnight, VIL announced a partnership with Texas-headquartered AST SpaceMobile to provide D2D
Time of India
25-06-2025
- Business
- Time of India
Vodafone Idea aims for $2.9 billion in loans to bolster network
Vodafone Idea Ltd. is talking to lenders to borrow about 250 billion rupees ($2.9 billion) in loans to bolster its network and compete better with large rivals, according to people familiar with the matter. The State Bank of India will likely lead a consortium of lenders, said the people who did not want to be named as the matter is private, adding the debt is expected to be a mix of domestic and foreign loans with a tenor of about 10 years. The billionaire Kumar Mangalam Birla-led wireless carrier had to earlier defer the plan as banks were concerned about the firm's weak finances and mounting dues to the government. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. The renewed efforts come amid reports that India is considering relief to wireless carriers on their dues. They have taken on more urgency as subscribers leave the carrier for larger rivals like Reliance Jio Infocomm Ltd and Bharti Airtel Ltd. A successful loan raise would help Vodafone Idea fund its capital expenditure and roll out a speedier network as it looks to reclaim market share. Live Events In April, the government had increased its stake in the money-losing carrier to 48.99% after converting a part of its spectrum payment dues into equity. A representative of Vodafone Idea declined to comment while State Bank of India did not immediately respond to Bloomberg's email seeking comments. Global banks too are expected to join the consortium, the people said, adding that the fund raising drive would be concluded in an year. In response to media reports suggesting relief on outstanding federal dues, Vodafone Idea said on June 24 that it had not received any official communication from the government. In May, the company's board had approved raising of 200 billion rupees through equity or loans.
&w=3840&q=100)
Business Standard
04-06-2025
- Business
- Business Standard
Vodafone Idea to seek shareholder nod for ₹20,000 cr fundraise, AoA tweak
Vodafone Idea Ltd has called an extraordinary general meeting on 27 June to seek shareholder approval for a ₹20,000 crore ($2.4 billion) capital raise and amendments to its Articles of Association (AoA) aimed at retaining promoter control. Shareholders will vote on two special resolutions. The first relates to changes in the company's AoA to reflect amendments in the shareholders' agreement that preserve governance and management rights for the promoters — Aditya Birla group and Vodafone Plc. The planned fundraise is part of Vodafone Idea's broader effort to strengthen its balance sheet and support investments in network expansion and 5G rollout. The move comes as the cash-strapped telecom operator continues to battle intense competition and legacy dues.
Mint
02-06-2025
- Business
- Mint
Vodafone Idea resumes relief talks with govt., links capex to bank funding
Vodafone Idea Ltd has begun discussions with the government to explore a resolution on the telecom operator's substantial dues, barely two weeks after the Supreme Court rejected its plea for a waiver on related payments. The struggling company is also engaging with banks to secure debt funding for its long-term expansion, chief executive Akshaya Moondra said, adding that banks would want clarity on the dues the telco owes to the government before they agree to lend. But it is not preventing the discussions from moving forward, Moondra said. 'I see no reason why the government should be constrained in any way to offer relief…,' Moondra said on Monday during a call with analysts to discuss Vodafone Idea's March-quarter earnings. Vodafone Idea is set to incur capital expenditure of ₹ 5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, Moondra said. The Supreme Court on 19 May dismissed writ petitions by Vodafone Idea, Bharti Airtel Ltd and Tata Teleservices Ltd seeking relief on interest, penalty, and interest on penalty on adjusted gross revenue (AGR) dues to the government. Vodafone Idea owes ₹ 83,400 crore in AGR dues to the government and had sought a waiver on over ₹ 45,000 crore comprising interest, penalty, and interest on penalty. While rejecting the petitions, the Supreme Court bench comprising Justices J.B. Pardiwala and R. Mahadevan clarified the court would not stand in the way if the government chose to step in. 'If the government wants to help you, we are not coming in your way,' Pardiwala had said. However, the court's written order, issued on 21 May, makes no reference to that remark, which was widely seen as a green light for possible relief. Vodafone Idea, India's third-largest telecom operator, is grappling with huge regulatory dues of around ₹ 2 trillion. The telecom operator said in its recent petition to the Supreme Court that it would not be able to operate beyond this fiscal year without bank funding, which remains elusive as lenders remain wary of its AGR dues worth more than ₹ 84,000 crore. Starting 31 March 2026, Vodafone Idea must pay an annual instalment of over ₹ 18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹ 16,428 crore towards AGR dues and ₹ 2,539 crore towards deferred spectrum dues. 'The government may have to extend the moratorium or increase its stake in the telco,' said analysts at IIFL Capital in a 20 May note. Vodafone Idea has been trying to raise bank funding of ₹ 25,000 crore for a long time now. The company said a recent credit rating upgrade as well as the government's recent conversion of dues worth ₹ 36,950 crore into equity has supported conversations with the lenders. 'There are some activities which we have to finish, which are currently in progress. We will again get to the point of discussions with the banks somewhere this month once some of the pre-requisites in terms of those actions and activities are completed,' Moondra said. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹ 50,000-55,000 crore over the next three years for expanding its 4G network and launching its 5G service. 'A large part of the capex will be implemented in the current quarter. In terms of our next round of capex, we have to decide and firm up our plan. It also has some dependence on funding. At least for this quarter and coming quarter, we are on track of incurring a capex of around ₹ 6,000 crore,' Moondra said. '(With) the capex, which is already under execution, we should be reaching a level of 84% of (4G) population coverage. I believe we will move up from 84%, but to get to 90% (the capex) has got linkages with bank funding,' Moondra said, adding that Vodafone Idea had increased its 4G coverage to 83% as of March-end from 77% a year earlier. Vodafone Idea incurred a capex of ₹ 4,230 crore in the January-March period, its highest in a quarter since the merger of Vodafone India and Idea Cellular in 2018. For FY25, the capex was at ₹ 9,570 crore, up from ₹ 1,850 crore in FY24. In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹ 20,000 crore through a further public offering (FPO), private placement, or other permissible mode. A capital raising committee will evaluate and decide on the potential route of fundraising, the company said. Moondra called for a tariff hike to help increase the return on capital employed for telecom operators. Despite a price increase in July 2022, the average revenue per user (Arpu) for telecom operators in India is still among the lowest in the world, he said. 'To ensure a fair return on significant investments and support future capital expenditure in the telecom industry, further tariff increases are essential. Additionally, the industry needs to move towards a pricing model where heavy data users contribute more proportionally to the high usage than the current pricing structure where the incremental data usage comes at an extremely low, unsustainable price,' Moondra said. According to Moondra, there is no room to increase the tariffs much at the lower level and the industry collectively has to switch to a new tariff structure. Last month, Bharti Airtel vice chairman and managing director Gopal Vittal also called for tariff restructuring to sustain the domestic telecom sector's financial health. Vittal too had explained that a tariff restructuring would mean reducing data allowances on some packs and charging more for those who can afford to pay. Vodafone Idea's net loss in the fourth quarter of 2024-25 widened to ₹ 7,166 crore from ₹ 6,609 crore in the third quarter and ₹ 7,675 crore a year ago, due to an increase in expenses, especially finance costs, which include interest payments on debt and other liabilities. Finance costs, accounting for 59% of the telecom operator's revenue from operations, rose 9% quarter-on-quarter and 3% year-on-year to ₹ 6,471 crore. Revenue from operations rose 4% on-year to ₹ 11,014 crore. The revenue, however, was down nearly 1% sequentially owing to subscriber loss, largely in the lower-end segment. The company's subscriber churn rate slowed during the March quarter. Compared to a loss of 5 million subscribers each in the September and December quarters, Vodafone Idea's subscriber churn slowed to 1.6 million in the fourth quarter. As of 31 March, it had 198.2 million mobile subscribers. Sequentially, its blended subscriber churn fell to 4.1% from 4.5%. The number of 4G subscribers nudged up to 126.4 million in the fourth quarter from 126 million three months earlier. Vodafone Idea shares climbed 1.73% to end Monday's trading session on BSE at ₹ 7.04 each.
Mint
31-05-2025
- Business
- Mint
Vi plans another Rs20,000 cr fundraise, remains hopeful of government support
Vodafone Idea Ltd's board approved raising another ₹ 20,000 crore through a further public offering (FPO), private placement, or other permissible mode to stay afloat, it said in an exchange filing on 30 May after reporting losses for another quarter amid never-ending financial troubles. India's third-largest telecom operator said it was confident of gaining government support, successfully arranging funding, and generating cash flow from operations, and announced that a Capital Raising Committee will evaluate and decide on the potential route of fundraising. The debt-laden company declared its March quarter results days after pleading before the Supreme Court for a waiver of massive government dues as banks refused it further loans. The court had rejected the plea. In the petition, the telco had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹ 84,000 crore linked to adjusted gross revenue (AGR). Before approaching the court, the company had submitted a similar representation to the government, seeking a waiver of interest, penalty, and interest on penalty on its AGR dues, which was not entertained. 'In the company's view, this dismissal does not preclude it from further engaging with the Government of India based on its foreseeable cash flows for arriving at an appropriate solution on the AGR matter before the next instalment date,' the telecom operator said in its financial statement. However, a government four-year moratorium on payments of AGR and spectrum dues for telecom companies, including Vodafone Idea, ends in September, making it even more difficult for the company. In the absence of any relief, starting 31 March 2026, it must pay an annual instalment of over ₹ 18,000 crore for the next six years towards AGR and spectrum dues to the government. In 2025-26 itself, it will have to pay ₹ 16,428 crore towards AGR dues and ₹ 2,539 crore towards deferred spectrum dues. Vodafone Idea said amounts pertaining to some of the years are subject to correction/revision due to the disposal of representations and any other outcome of litigation. The amounts will be finally determined by 31 December 2025 and are payable in six equal instalments after the moratorium period starts from 31 March 2026. But first, it desperately needs an operational turnaround. In line with the Street estimates, its net loss for the fourth quarter of 2024-25 widened sequentially to ₹ 7,166 crore from ₹ 6,609 crore. The same was ₹ 7,675 crore a year ago. The sequential rise in losses can be attributed to an increase in expenses, especially finance costs, which include interest payments on debt and other liabilities. Finance costs, accounting for 59% of its revenue from operations, rose 9% quarter-on-quarter and 3% year-on-year to ₹ 6,471 crore. An average of six brokerage firms' estimates had pegged losses at ₹ 7,162.5 crore. Its revenue from operations rose 4% on-year to ₹ 11,014 crore, in line with estimates, owing to improvement in its subscriber mix and an increase in postpaid users. The revenue, however, was down nearly 1% sequentially owing to continuous subscriber loss, largely in the lower-end segment. 'This has been a turnaround quarter for us, marked by the highest average daily revenue in the past five years and a significant reduction in subscriber loss,' said Akshaya Moondra, chief executive of Vodafone Idea. 'Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the Industry,' Moondra said, adding that the company remains engaged with lenders to secure debt financing to support our broader capex plans of ₹ 50,000–55,000 crore. Owing to a rise in revenue on a year-on-year basis, Vodafone Idea's earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 7.5% to ₹ 4,660 crore. On a quarterly basis, Ebitda fell 1.1% due to an increase in expenses and a decline in revenue from operations. Vodafone Idea declared its results late Friday night, after the bourses closed. Its shares closed 3.2% lower at ₹ 6.92 on BSE. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter. As of 31 March, it had 198.2 million mobile subscribers. Sequentially, its blended subscriber churn fell to 4.1% from 4.5%. The company's 4G/5G subscribers rose to 126.4 million from 126 million in the quarter-ago period. The company's postpaid subscribers were 25.6 million, up from 25.2 million in the preceding quarter and 23.9 million in the year-ago period. The telco has been improving its 4G services with network upgrades and has also started rolling out 5G, with Mumbai, Chandigarh, and Patna being the first circles. On 15 May, it launched 5G in Delhi and said it was targeting to expand the services in all 17 circles by August 2025. However, analysts at BofA Securities said in a 7 April note that VIL (Vodafone Idea) was still some point away from showing positive net adds. Its average revenue per user (Arpu), a key performance metric, rose marginally to ₹ 164 from ₹ 163 in the preceding quarter, in line with estimates. Two fewer days during the March quarter caused a largely flat Arpu, offsetting the company's improved subscriber mix. Further, the impact of the July tariff hikes also ebbed. In comparison, Airtel's India Arpu was flat at ₹ 245 in the quarter, whereas Reliance Jio's Arpu rose to ₹ 206.2 from ₹ 203.3 in the December quarter. Vodafone Idea has been grappling with huge dues. As of 31 March, its total government dues stood at around ₹ 2 trillion, including ₹ 1.19 trillion in spectrum dues and ₹ 83,400 crore AGR dues. Its outstanding debt from banks (including interest accrued but not due) was ₹ 2,345 crore. In March, the government offered another reprieve to the company by converting an additional ₹ 36,950 crore worth of statutory dues into equity. This was the second dues conversion that took the government's stake in Vodafone Idea to 49%. On 2 June, at the earnings call, analysts and investors will closely watch for the company's commentary on the AGR dues, any clarity from the government on possible relief, fundraising prospects, the company's sustainability post-2025-26, and future tariff hikes.
