Vodafone Idea & Airtel AGR Fiasco

socrates said:

Even bailout attempt won’t help Vodafone Idea compete with peers: Analysts - The Economic Times - Even bailout attempt won’t help Vodafone Idea compete with peers: Analysts
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See this...

The German investment bank said, “The Aditya Birla Group (one of VIL’s co-promoters) may even consider getting Vodafone Idea to go into bankruptcy on the chance that it may be able to repurchase the rump of the business.”

It added that this was an “ambiguous area” with the government wanting to avoid promoters buying assets of their failed companies for fear of regulatory arbitrage, even though when it comes to self-declared bankruptcies, the rules are not entirely clear.

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@godric_gt All the more reasons for customers to jump ship. Especially those who get poor signal & speeds. Maybe that's why we don't see any new tech innovations/features coming from VIL now. Heard many of their staff are busy job hunting than doing the current job😖.

The death of Vodafone Idea starting to become a real prospect
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Just when we are saying RIP🙏 comes this 🤔😋 Vodafone Idea's fight for survival continues for the sixth quarter

Govt should provide relief not sc. Intent is clear . Thats why jio paid peanuts in hurry. To hurt other.

These telecom operators are to blame for their situation. They all reneged on an agreement with the Govt and took it to court over AGR. They've lost and must pay the amount due with interest and other charges.

That said, should any operator close down now it will be a loss for customers, the Govt, the banks (!!) and last but not the least the employees and dealers. The Govt can't afford to be rigid with this demand and may extend deferred payment terms and hence a lifeline. This does not bode well though. Because these operators will stop investing in technology upgrades and I expect an impact on QoS just like what has happened to BSNL/MTNL after they downsized their employees and cut back on costs.

Vodafone-Idea was shitty enough to begin with 2 years ago when I ported to Jio. I think VF-I customers should seriously consider porting out to Airtel or Jio. Should VF-I survive and pull up their socks they can always port back after a few months.

Here is an example of what these companies are doing with the cash they have, instead of repaying government dues. All this happened in 2014. Vodafone could have used this opportunity to clear out the tax dues first, the interest amount would've been very less then.

Billionaires Ajay Piramal and Analjit Singh have sold their stakes in Vodafone India to Vodafone Group Plc, enabling the British telecom major to take full control of its local telecom venture.

While Piramal Enterprises, the Ajay Piramal Group flagship, sold the 10.97% stake for Rs 8,900 crore, Singh sold his 24.65% holding for Rs 1,241 crore. Both the deals were first reported in economictimes.com on Thursday.

Piramal Enterprises sold its entire stake for Rs 1,960 per share, securing a gain of Rs 3,000 crore — or 52% return — in just two years.

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Read more at:
Vodafone buys out Analjit, Piramal from Indian arm for Rs 10,000 crore

^ Government of India is greedy and they have been always.

Telecom Companies saying, charge for the dues for which they have used Govt's infra. Govt. is saying, pay from your revenue.

If I am renting an office, I would pay my rent to the landlord. I wouldn't pay share of my revenue/profit to my landlord.

Govt. is greedy towards businessman and aam admi both.

They simply know how to tax everything but rather don't have anything to give back to the tax payer either.

The schemes which Govt. has launched (any govt) has never favored a tax payer in India. I don't disagree with the development of the Rural Area but I am not Ambani either. I pay my share to you, I expect back from it.

Same does corporate, they have been charging huge corporate taxes for years and years now and now Govt. is biased towards one specific telecom that is Jio.

In so many years, Airtel and Vodafone has agreed to one common stance, that is Govt. is biased towards Jio. Same is said by eCommerce giants.

I'm neither anti-BJP nor Pro-Congress.

I am not saying Vodafone shouldn't pay their dues, but I think kicking a UK Telecom out of India and giving more advantage to Jio (duopoly where Airtel might be the next to exit), will only bring disadvantage to consumers like us.

What you are referring to is fixed licensing, the telecom companies had signed on in 1999 to move from a fixed licence fee regime (which was too high) to a revenue-share regime.

Airtel and Vodafone has everything in common even since the Hutchison days. The increasing of their prices, launching features such as caller tunes, 3G implementations, holding back on 4G implementation, every little detail so carefully planned and in sync. But who cares, lets blame Jio for putting a stop to these practices.

What I know is that, neither Govt. need that fees/due amount urgently as that isn't enough to either save our down economy. I think corporate does deserve a bit of room to breath in such a poor economy.

If they kick Vodafone out of India.

First message it sends is: India is not business friendly. It doesn't value FDI. It doesn't give room for corporate to revive themselves.

Second: India doesn't care about their own citizen. Vodafone employees thousands of people. Where are they going to go? Airtel and Jio together cannot compensate each one of them.

Third: Indian Govt. is favoring one company that is RIL (One cannot deny that).

As Mrs. Sitaraman said, she doesn't care about Onion just because she doesn't eat it. I think they don't use Vodafone that is why they don't care about it.

If economy is going down, Govt. should be working with corporate to give more and more jobs rather than ending it.

Everything cannot be solved by consuming Gau Mautra or chanting Hanuman Chalisa.

My major concern is nations economy rather than fees/fines/dues. This nation needs companies like Vodafone to employee right now.

Govt. is such stupid that they have been feeding TAX PAYER's money to BSNL and MTNL without any sort of say of TAX PAYERS for Years now (same with Air India). But they can't do 1% of efforts when it comes to private companies.

Jet Airways, Vodafone are some names.

msingh said:

They signed the agreement and later they backtracked, filed case and now they have lost the case.

They have to pay the dues, it's simple.

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I have said the same already.

gomfi said:

I am not saying Vodafone shouldn't pay their dues, but I think kicking a UK Telecom out of India and giving more advantage to Jio (duopoly where Airtel might be the next to exit), will only bring disadvantage to consumers like us.

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gomfi said:

My major concern is nations economy rather than fees/fines/dues. This nation needs companies like Vodafone to employee right now.

Govt. is such stupid that they have been feeding TAX PAYER's money to BSNL and MTNL without any sort of say of TAX PAYERS for Years now (same with Air India). But they can't do 1% of efforts when it comes to private companies.

Jet Airways, Vodafone are some names.

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More to say, all the rules and regulations applies to corporate and common man but there is no bond, no rule and regulations to Govt. for not fulfilling any promises or concerns. How to take fines for it?

gomfi said:

What I know is that, neither Govt. need that fees/due amount urgently as that isn't enough to either save our down economy. I think corporate does deserve a bit of room to breath in such a poor economy.

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I think these corporates know exactly how rich we are, otherwise why would they have been charging Rs.250 for 1GB data for these past few years? These corporates had no problem tightening the noose around our necks by implementing such high tariffs all these years. I think Mukesh Ambani an Indian gave a perfect response by tightening the noose around these corporates necks. Now they have an idea how we have felt all these years.

gomfi said:

Everything cannot be solved by consuming Gau Mautra or chanting Hanuman Chalisa.

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I dont think anyone is running away, they will say they feel unsafe, they will say business is not working out, but they wont be going away. India has one of the biggest consumer base in the world, they want to fatten their pockets and the only place they can do that is if we Gaumutra drinkers and Hanuman Chalisa chanters do them a favour by taking their service.

^ That is a myth, Vodafone has reported their losses. They cannot lie in that. Moreover, Vodafone UK isn't doing great either. It's true they cannot fund Indian businesses anymore.

Peace ✌guys, be cool The sad inescapable fact is there have been mistakes, stupidity, greed all around. There is no clear black & white only a lot of different shades of grey. ☹ At the end of the day we will end up holding the can.