Another bad news is coming in the wake of the debt crisis in the telecom sector. There are reports that Vodafone, the telecom operator is preparing to exit from the Indian market. The operating loss of the combined company of Vodafone Idea continues to grow. The company is losing millions of subscribers every month. Along with this, its market capitalization is also steadily decreasing due to the fall in share prices. Due to all these reasons, Vodafone can consolidate its Indian business at any time.
Vodafone Group plc’s corporate communications chief Ben Padovan neither confirmed nor denied these speculations of Vodafone India Exit.
A leading news agency originally asked the spokesperson of this British company to know the truth of these reports. The agency was asked to ask Vodafone Group plc’s corporate communications chief Ben Padovan this question. However, he has neither confirmed nor denied these reports yet. But the buzz is that the company is considering shutting down Indian operations at any time.
Also Read: Another setback for Telcos from Supreme Court for AGR
There were also reports that Vodafone Idea has started talks with lenders for debt restructuring. However, the company on Wednesday categorically denied it, saying that such reports are baseless and that the company is in a condition to pay all the debts on time.
Supreme Court AGR verdict has made Vodafone’s path more difficult in India
According to experts, the decision of the Supreme Court last week on AGR has made Vodafone’s path more difficult. The reason for this is that the crisis of paying tax of thousands of crores of rupees on Vodafone Idea is in front. The company has also said that it is studying the verdict and will not hesitate to seek legal help if needed. However, the Supreme Court has said that there will be no litigation in the AGR case.
Let me tell you that recent Supreme Court verdict for Telecom companies to pay approx 1.4 Lakh crore AGR hit a lot to Vodafone-Idea and Airtel. Alone Vodafone has to pay approx 40,000 Crore as AGR to the Indian Government.
Considering the current situation, it’s best way for Vodafone to exit India and continue to do business in profitable markets across the globe.
