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Vodafone Idea sees user churn dropping from Q4
Vodafone Idea (Vi) anticipates a reduction in its monthly subscriber churn rate, currently at 4%, starting from the fiscal fourth quarter. This improvement is expected as the company begins addressing 4G coverage gaps with its ongoing capital expenditure (capex) plans.
Equity funding helps Vi clear its entire ₹700 cr statutory dues for Q1
Vodafone Idea (Vi) has settled its ₹700 crore statutory dues for the April-June quarter, marking the first time in over two years the telecom operator has met its obligations on time. The payment includes licence fees and spectrum charges, a significant improvement from past partial repayments. Boosted by recent equity funding, Vi's cash reserves rose to ₹18,150 crore as of June 30. The company is in discussions with banks to secure up to ₹25,000 crore in debt and has begun securing network deals for 5G and 4G upgrades.
Vodafone Idea sees rise in subscribers port-outs after tariff hikes: CEO Akshaya Moondra
Vodafone Idea (VIL) is experiencing a rise in subscribers porting out to Bharat Sanchar Nigam Ltd (BSNL) following recent tariff hikes. VIL CEO Akshaya Moondra believes that quick decisions to port out purely based on tariff action may not sustain, given the 4G coverage offered by VIL. The recent tariff hikes have led to a fair amount of arbitrage, and VIL is closely monitoring the situation.
Govt selling stake in Vodafone Idea? Here's what the telco has to say
Vodafone Idea (VIL) has denied that it has received any communication from the government regarding its stake in the telco, despite reports suggesting that sovereign funds may be interested in offloading its stake. CEO Akshaya Moondra stated that the company has seen port-outs by users to BSNL increase since tariff hikes were imposed, and is closely monitoring the situation.
Vodafone Idea's ARPU improves to Rs 146 in Q1 of FY25; up 4.5% YoY
Indian telco Vodafone Idea reported a 4.5% increase in Average Revenue Per User (ARPU) in Q1 FY25, thanks to a change in entry level plans and subscriber upgrades. The 4G subscriber base also showed steady growth, reaching 126.7 million by Q1 FY25, bringing the total to 210.1 million.
Accenture get CCI's nod to acquire stake in Vodafone's arm
Accenture's acquisition of a stake in Vodafone Shared Operations received clearance from the Competition Commission of India. VSOL offers shared services to Vodafone. Mitsui & Co (Asia Pacific) also gained approval for acquiring equity in MTC Business Pvt Ltd. These approvals aimed at promoting fair competition and curbing unfair business practices.
Vi may diverge from rivals on 5G, likely to price it cheaper
Vodafone Idea may offer lower 5G service prices than rivals Jio and Airtel, according to CEO Akshaya Moondra. While exact launch dates remain undisclosed, the company is finalizing 5G rollout plans. Vi expects some revenue boost from recent tariff hikes, even as some users migrate to BSNL due to increased prepaid rates.
Jio leads in user growth & market share, Airtel expands 4G, 5G base; Vi continues to struggle: Report
In June 2024, Reliance Jio significantly outpaced Bharti Airtel in adding new active users, with Jio gaining nearly 4 million compared to Airtel's 0.67 million. However, Airtel added more higher-paying 4G and 5G users, while Vodafone Idea (Vi) continued to lose active users but saw some gains in 3G and 4G users.
A 4G boost for struggling Vodafone Idea as extra waves freed in key band
The Department of Space allocated an additional 20 MHz spectrum in the 2500 MHz band for mobility, aiding Vodafone Idea (Vi) by offering a contiguous block for better 4G services. The harmonisation facilitates future auctions, which could attract interests from operators like Vi or BSNL for the enhanced spectrum portfolio.
Indus Towers' trade receivables to stabilise depending on Vi's payment clearance
Indus Towers' management foresees a delay in stabilising trade receivables, dependent on Vodafone Idea's clearance of past dues. Receivables dropped 11.3% to Rs 5,722 crore in Q1 with improved Vi collections but no fixed timeline yet. Indus CFO mentioned ongoing payment plan discussions with Vi. Indus initiated a share buyback, excluding major stakeholder Bharti Airtel; Indus reported a 43% YoY profit increase in Q1 FY25 driven by Airtel's 5G rollout and Vi overdue recoveries.
SAR Televenture signs pact to deploy 4G sites for Vodafone Idea
The deal is part of Vi's larger network expansion plan, "for which they have started locking-in vendors", SAR MD Rahul Sahdev told ET. "We are aiming for a deeper partnership with Vi as there is no operational hitch after the company concluded fundraising recently."
Vodafone Idea offers to clear remaining Nokia dues of Rs 1,500 crore
Vodafone Idea plans to settle its remaining ₹1,500 crore dues to Nokia by December 2025 through cash installments. Earlier, Vi issued equity shares to Nokia to clear half of its ₹3,000 crore debt. Despite payment delays, Vi is negotiating with Nokia, Ericsson, and Samsung for network equipment.
Vi expands L900 technology in Kolkata to enhance network infrastructure
Vi has also acquired additional spectrum in the recently concluded spectrum auction, committing Rs 31 crore for 0.4Mhz of spectrum in the 900 Mhz band in Kolkata Circle and Rs 376 crore for 7.6 Mhz of spectrum in the 900 Mhz band in West Bengal Circle.
SC to mull listing of Vi's curative petition on AGR dues
The Supreme Court will soon decide on the listing of Vodafone Idea Ltd's curative petition related to adjusted gross revenue (AGR) dues. The company's new backers are seeking to know its exact liability towards AGR dues, citing DoT's errors in computing the final demand. The apex court had previously rejected Vodafone Idea's petition for rectification of alleged errors in the calculation of AGR dues payable by the company.
Vi follows Jio, Airtel to raise tariffs; new plans effective July 4
Vodafone Idea has launched new plans for prepaid and postpaid customers starting July 4, 2024, following Jio and Airtel's footsteps. The changes are minimal, aligning higher prices with increased usage, and Vi aims to provide simple, comprehensive plans.
DoT issues demand notices to Airtel, Vodafone Idea, and Reliance Jio for 5G spectrum payments
In India’s second 5G airwaves sale that concluded June 26, Bharti Airtel was the biggest spectrum buyer, lapping up 97 MHz of 5G airwaves worth Rs 6,856.76 crore. Vi was the second-biggest buyer, acquiring 30 MHz of 5G spectrum for Rs 3,510.40 crore. Telecom market leader Reliance Jio bought a modest chunk of 5G airwaves worth Rs 973.62 crore, its lowest-ever in an auction.
Airtel and Jio expected to log steady growth, Vi may falter
Reliance Jio and Bharti Airtel are expected to show steady growth in the June quarter, driven by strong broadband user additions, while Vodafone Idea (Vi) is likely to experience a dip in revenue due to ongoing customer losses. Airtel is anticipated to outperform Jio in terms of average revenue per user (ARPU) due to 2G-to-4G conversions and rising postpaid adoption. Vi's ARPU is expected to remain stagnant amidst limited 4G user gains.
Vodafone Idea acquires Rs 3,510 crore worth of airwaves in 11 circles
India's Vodafone Idea has spent Rs 3,510 crore to acquire 50MHz of spectrum in 11 circles, strengthening its 4G portfolio and launching 5G services. The acquisition will enable the use of dedicated sub-GHz spectrum for advanced technologies and customer experience. Vodafone Idea has also held 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) solutions.
Vi completes minimum 5G rollout requirements
Vodafone Idea (Vi) has announced completion of its Minimum Rollout Obligations (MRO) across all 17 circles where it acquired 5G spectrum in August 2022. This step is essential for commencing 5G services, although Vi has yet to announce detailed rollout plans due to financial constraints. Unlike its competitors Reliance Jio and Bharti Airtel, which have almost completed nationwide 5G rollouts, Vi plans to gradually expand its network starting with equipment orders to vendors like Nokia and Ericsson.
Vi clears allotment of 3rd tranche of equity shares worth Rs 614.5 crore to Nokia, Ericsson
This follows Vi announcing last month its plans to raise up to Rs 2,458 crore from the two vendors via a preferential issue for partly clearing its dues in the run-up to expansion of its 4G networks and rollout of 5G services in priority markets. Nokia and Ericsson will participate for up to Rs 1,520 crore and Rs 938 crore respectively in the preferential issue.
Reliance Jio leads in new mobile users, Airtel gains ground; Vi continues decline: TRAI data
Reliance Jio maintained its lead over Bharti Airtel by adding 2.20 million mobile users in May, while Airtel followed with 1.25 million additions, as per TRAI data. Meanwhile, Vodafone Idea (Vi) faced a loss of 924,797 users, marking its largest decline in three months. Airtel recorded the highest active subscriber percentage at 99.07%. Jio held 40.60% of the wireless market share with 474.62 million users, followed by Airtel at 33.17% with 387.77 million users, and Vi at 18.66% with 218.16 million users.
Amid delays in clearing dues, Vodafone Idea confident of support from operational creditors
Vodafone Idea (Vi) remains optimistic that its operational creditors, including network equipment suppliers Nokia and Ericsson, as well as tower vendor Indus, will maintain their support despite payment delays. Vi expects its forthcoming 4G and 5G initiatives to generate new business opportunities for these partners. According to Bharti Airtel chairman Sunil Mittal, Vi must settle all outstanding dues with Indus to continue using the tower company’s infrastructure for future services like 5G.
Vodafone UK may offer Rs 2,000 crore equity topup to Vi
Vi may also make more substantial payments to Indus towards cutting its dues after the telco raises debt of ₹23,000-25,000 crore through term loans as planned, analysts added. After the recent sale of its 18% stake in Indus, UK's Vodafone holds 3.1% of the tower company and is said to be in talks with Bharti Airtel to sell these shares, people familiar said.
Vi dials lenders for Rs 23,000 cr term loans, seeks Rs 10,000 cr in bank guarantees
Vodafone Idea (Vi) proposes borrowing Rs 23,000 crore in term loans and seeks Rs 10,000 crore in bank guarantees to enhance its telecom infrastructure and compete with Reliance Jio and Airtel.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
Vodafone Idea in talks with Samsung to expand 4G networks, roll out 5G
Vodafone Idea (Vi) has initiated 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) technology on a non-standalone architecture. The trials, aimed at expanding its 4G and introducing 5G services, took place in Chennai, Karnataka, and Bihar. Despite its financial challenges and lagging behind rivals Airtel and Jio in 5G rollout, Vi fulfills its 5G spectrum obligations from the 2022 auction with these trials.
ET Graphics: A look at telecom industry's top carriers ahead of India's second 5G spectrum sale
India’s second 5G spectrum sale starts on Tuesday, featuring bids from top carriers Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi). This sale is expected to run for a day or a day-and-a-half and is anticipated to be a low-key affair. Only 10.5 GHz of 5G airwaves are available this time, significantly less than the 72 GHz offered in the country's first 5G spectrum auction in July 2022.
Jio, Airtel pricing strategy shows they still target Vi’s 2G users: Analysts
Analysts suggest that Vodafone Idea could encounter difficulties in retaining its 2G subscribers, as recent tariff increases indicate that competitors like Reliance Jio and Bharti Airtel remain focused on attracting Vi's low-end customers. Reliance Jio has maintained its rates for 4G feature phones, while Bharti Airtel has made minimal adjustments to its basic plans, highlighting their strategies to capture Vi's 2G user base.
Vi needs 2.2x ARPU jump to meet payout obligations
Vi’s ARPU, they said, needs to jump 2.2x to around Rs 320 by FY27—from Rs 146 now—even if the cash-strapped telco sees a 50% cut in its adjusted gross revenue (AGR) liability to Rs 35,000 crore via a favourable Supreme Court verdict on its curative plea. As per company data, Vi’s total AGR dues were pegged at Rs 70,320 crore in the quarter to March 2024.
Buoyed by ₹18,000 crore fund-raise, Vi beefs up 4G coverage, network in UP, Uttarakhand
The company plans to add a 900 MHz band layer, which will significantly enhance indoor network experience for its customers in the two circles. “The deployment of L900 coverage will be beneficial in urban areas with dense building infrastructure, as well as suburban and rural areas where signal penetration is a challenge,” Vi said in a statement Thursday.
Voda Idea launches extra data for new 4G and 5G smartphone users
Vodafone Idea (Vi) has introduced 'Vi Guarantee Program' offering 130GB extra data for 4G and 5G smartphone users. Users receive 10GB every 28 days for 13 cycles. Chief Marketing Officer Avneesh Khosla stated the program aims to enhance data experience. Available to users on specific plans, excluding certain regions. Aimed at maximizing smartphone potential.
Vi's network expansion plans may take a hit on vendor payment jinx
Vodafone Idea's plans to expand its 4G and launch 5G have encountered issues as financial negotiations with Ericsson and Nokia are stalled due to payment term disagreements. The vendors rejected Vi's cash-and-stock payment proposal. They also expressed concerns about swapping existing Chinese equipment due to potential service disruptions and high costs, although Vi denied these issues.
Vodafone Idea may find it tough to raise tariffs after polls, say analysts
Vodafone Idea faces challenges in increasing ARPU through tariff hikes post-election, as price-sensitive customers resist. 42% of Vi users may downgrade or close secondary SIMs due to upcoming higher tariffs. Vi seeks to upgrade 2G to 4G, double Ebitda by 2025. Vi has been securing funds for 4G expansion and potential 5G rollout.
Vi fundraising may not click until new govt comes online
Vi’s lenders are seeking clarity on future equity conversions by the government, as well as the outcome of the telco’s curative plea in Supreme Court over an earlier order on its arrears based on adjusted gross revenue. These issues, according to bankers, will ultimately determine the cash-strapped company’s future regulatory payment obligations, especially after the moratorium on the payment ends next year.
Reliance Jio takes the lead, hikes tariff by 12-25 per cent; Airtel & Vi likely to follow suit
Mobile phone bills are set to increase as Reliance Jio Infocomm announced a 12-25% hike in tariffs starting July 3. This marks the first major rate increase by a telecom company since 2021. Bharti Airtel and Vodafone Idea are expected to follow suit. The hike aims to boost average revenue per user (ARPU) in light of significant 5G investments. Jio’s rate hikes will affect most plans, but not JioBharat or JioPhone users.
Telco EMDs for June 5G sale lowest since 2014 auction: Analysts
India's top telcos submit low earnest money deposits (EMDs) for the upcoming 5G spectrum auction, marking the lowest since 2014. Analysts suggest selective bidding, foreseeing maximum spectrum demand of $2.5 billion, far below previous auctions. Reliance Jio leads EMDs; Airtel and Vi likely focus on renewals and selective bidding for 5G rollout.
Vodafone Idea asked to pay Rs 15.19 cr GST, penalty of Rs 1.51 cr
Vodafone Idea has been ordered by the GST office in Patna to pay Rs 15.19 crore along with a penalty of Rs 1.51 crore for availing ineligible input tax credits in FY20 and FY21. The company disagrees with the order and plans to take legal action. The order was received on August 28, citing input tax credit issues for the fiscal years 2019-20 and 2020-21.
Jyotiraditya Scindia takes charge as Minister of Communications
Union Minister of Communications Jyotiraditya Scindia has emphasized the importance of the telecom division and India post division on both a global and local level. Scindia, who has previously served as civil aviation minister in the Modi cabinet, pledged to deliver according to the Prime Minister's aspirations and the 140 crore people of the country. He also highlighted the challenges of overseeing India's 5G spectrum auction, retaining India's three-private player telecom market structure, and ensuring the survival of Vodafone Idea, the government's largest stakeholder.
Vodafone Idea’s AGR dues to plunge 46% if SC verdict on curative petition is favourable: Analysts
Vodafone Idea's AGR dues may drop by 46% to Rs 38,400 crore with relief on curative petition, analysts say. Vi seeks waiver of penalty component in AGR demand. Payment reduction could provide cash flow relief, but challenges remain with significant payouts ahead. Management hopeful for Supreme Court relief on AGR calculation errors. Financial restructuring and strategic partnerships planned for Vi's future growth.
Voda Idea says it’s in talks with Ericsson and other network vendors for buying 5G gear, shares jump 12% on BSE
Earlier this week, Ericsson India MD Nitin Bansal had told ET that the Swedish gear maker is hopeful of getting some 4G/5G deals from Vi soon, especially after the beleaguered telco recently raised over Rs 20,000 crore via the equity route.
Signalling clarity on payment approach: Vi may give government more equity to clear its bills
Vodafone Idea (Vi) CEO Akshaya Moondra discussed the telco's strategy to address government dues, including further conversions into equity and utilizing internal accruals. With obligations towards spectrum and AGR payments, Vi aims to leverage these methods before the moratorium ends in September 2025. Moondra also emphasized the viability of tariff hikes post-elections, highlighting the essential nature of mobile services. Vi is actively planning 5G rollouts, aiming for key city deployments over the next six months.
Ericsson hopeful of securing Vi deals: Nitin Bansal
Ericsson, the Swedish telecommunications equipment manufacturer, anticipates securing 4G/5G contracts from Vodafone Idea (Vi) in the near future, following the recent successful equity raise of over Rs 20,000 crore by the struggling telecom company. Nitin Bansal, Managing Director of Ericsson India, expressed this optimism in an interview with ET. Bansal also mentioned that Ericsson is considering the possibility of exporting its 5G equipment from India.
COAI names VI's Abhijit Kishore as chairperson; Bharti Airtel's Rahul Vatts vice-chair
COAI appointed Abhijit Kishore as chairperson and Rahul Vatts as vice chairperson. Kishore succeeds Pramod K Mittal. Scindia took charge as telecom minister in Modi 3.0 government.
Vehicles may be polluting more than you think despite passing PUC tests
The International Council on Clean Transportation reported that Indian vehicles, including those compliant with BS VI norms, emit more pollutants in real life than in controlled environments. The study used remote sensing technology to measure emissions, highlighting significant gaps in the Pollution Under Control certification process and suggesting improvements like remote sensing to better assess vehicle emissions.
Vodafone Idea must clear Indus Towers dues to avail tower company's new services: Sunil Mittal
Bharti Airtel chairman Sunil Mittal emphasized that Vodafone Idea must settle all past dues with Indus Towers to access new services like 5G. However, Mittal mentioned that the Indus board will remain flexible with its decisions even if Vi makes a significant payment and provides a schedule for the remaining amount. Airtel is a major stakeholder in Indus Towers.
Vi investment focus on 4G and 5G: CEO Akshaya Moondra
Vodafone Idea CEO Akshaya Moondra has announced plans to invest in 4G services expansion and 5G rollouts, announcing the successful completion of a ₹18,000-crore follow-on public offer (FPO) subscribed seven times. The telco is committed to customer satisfaction and aims to deliver high-quality service. The joint venture between Vodafone and Aditya Birla Group has set aside over ₹12,000 crore for 4G expansion and 5G rollouts, with ₹5,720 crore allocated for 5G rollouts.
Voda Idea's Rs 18,000-crore FPO a significant milestone, says CEO Akshaya Moondra
“We are ready for a new chapter of growth and innovation that is empowered by our state-of-the-art network, advanced technology and unwavering commitment towards customer satisfaction,” Moondra wrote in a letter to customers Friday.
Vodafone Idea plans to open more retail outlets: Executive
Empowered by a recent infusion of equity funding, Vodafone Idea (Vi) aims to expand its network of retail outlets throughout this fiscal year. This strategic move is designed to bolster sales and enhance customer loyalty, essential for the financially constrained telecom operator to heighten its competitive stance against formidable adversaries like Reliance Jio and Bharti Airtel.
Vi expects to clear all vendor dues in FY26, say analysts
According to Vodafone Idea management, proceeds from Rs 18,000 crore FPO and proposed Rs 25,000 crore debt funding would enable telco to also upgrade network, say analysts.
Airtel likely to be biggest 5G spectrum buyer in June 6 sale: Analysts
Bharti Airtel is expected to increase its sub-GHz airwave holdings in the 900 MHz band across multiple circles in the upcoming spectrum auction, potentially becoming the top buyer despite Reliance Jio submitting the highest earnest money deposit (EMD). Airtel aims to bolster its rural mobile broadband coverage by enhancing its low-band airwaves arsenal. While Jio leads in sub-GHz spectrum holdings, Airtel's recent focus on rural expansion and improved financial position suggests significant investments in 900 MHz spectrum across 12 circles.
Vodafone Idea cash Ebitda seen growing 32% CAGR during FY24-28
Analysts predict Vodafone Idea's cash EBITDA to grow at a 32% compounded annual rate from FY24-28, aided by customer additions and average revenue per user (ARPU) growth driven by potential tariff increases. Following a targeted fundraise of Rs 45,000 crore, Vi is expected to achieve around 3.3% and 10% compounded annual growth in customer additions and ARPU respectively over FY24-28. However, caution is advised as Vi may need to provide about Rs 22,000 crore in bank guarantees to the government post the completion of the payment moratorium on regulatory payouts in September 2025.
MNP number shows competition intense as Jio, Airtel fight for Vi users
Telecom companies compete fiercely for market share. Vodafone Idea struggles without 5G. Airtel and Jio focus on service quality and rural expansion. Broadband users increase, with Jio leading the growth.
Vi mulls rolling out 5G on large scale in 6 months, plans up to Rs 55,000 cr investment in 3 yrs
Vi CEO Akshaya Moondra said the company's investment will focus on expanding and strengthening coverage in 17 priority circles to be competitive.
Vi's loss shrinks to Rs 6,432 crore in Q1FY25; subs churn continues
Vodafone Idea reduced its net loss to Rs 6434.4 crore in Q1 FY25 from Rs 7675 crore in the prior quarter. Operating costs remained stable, but the company continued to lose customers. Revenue dipped slightly, and the subscriber base decreased. However, the 4G subscriber count saw a minimal increase.
Vodafone Idea Q1 Results: Losses narrow to Rs 6,432 crore; revenue down marginally
Vodafone Idea has narrowed its losses to Rs 6,432 crore for the first quarter ended June 2024, compared with Rs 7675 crore reported in the preceding March 2024 quarter and Rs 7840 crore in the last year quarter.
There is no need for voice or SMS-only packs, say telecom companies
Reliance Jio, Bharti Airtel, and Vodafone Idea opposed the introduction of separate voice or SMS-only packs, emphasising that current tariff plans cater to all users. They highlighted the shift towards data-centric communication, citing increased usage with bundled voice and data offerings. The operators stressed that unbundling plans may lead to complexity and higher costs for consumers, potentially widening the digital divide. SMS packs have lost relevance due to messaging apps and reduced SMS usage.
Jio spent least on dealer commissions, branding in FY24
The telecom market leader spent 3% of its FY24 sales on dealer commissions as against Bharti Airtel’s 4% and Vodafone Idea’s 8.4%. Jio also benefited from group company Reliance Retail’s infrastructure and in-house media properties for advertising, analysts said.
Take-Two banks on new games to boost bookings in next two fiscal years
The company in May had narrowed the release window for "GTA VI" to fall of 2025, setting the stage for the launch of the next installment of one of the most popular video game franchises in the world.
Why this maverick investor is betting on Vodafone Idea
America's GQG Partners, known for successful bets on Adani companies, is now investing $400 million in Vodafone Idea's share sale, a move seen as a major endorsement for the struggling telecom giant. Vi, facing massive debt and structural issues, hopes the fund-raise will strengthen its position in the market.
Vi to rollout 5G within 9 months of fundraise: CEO Akshaya Moondra
Vodafone Idea (Vi) plans to roll out 5G services in six-nine months after completing its equity funding round of ₹20,000 crore this quarter. The company plans to spend over 70% of its over ₹45,000 crore fundraise via debt and equity into capex for 5G rollout and 4G network expansion. The government's stake in Vi will be diluted to 24% after the ₹18,000-crore follow-on share sale, which could rise to 32-33% if the Centre decides to convert some of the principal dues into more equity.
Vodafone Idea expects 5G rollout in 6-9 months after FPO
Vodafone Idea plans 5G launch post Rs 18,000 crore FPO, targeting 40% revenue base coverage in 24-30 months. Rs 5,720 crore allocated for testing and vendor conversations. Challenges faced due to fund shortage.
Indus Towers facing a Rs 60 cr shortfall in collections from Vodafone Idea in Q4
Indus Towers received an additional Rs 360 crore from Vodafone Idea (Vi) for old dues, but analysts note a Rs 60 crore shortfall in collections. Despite this, Indus' trade receivables increased by Rs 430 crore sequentially in Q4FY24, reflecting the delayed collection of Vi's past outstandings, ultimately settled in April.
Revenue/Ebitda misses led to Vi’s higher net loss in Q4FY24: Analysts
Vodafone Idea's widening net loss to Rs 7,675 crore in the fiscal fourth quarter was attributed to lower revenue and operating income. Despite minimal customer losses, Vi struggled to compete with Reliance Jio and Bharti Airtel. Analysts noted a decline in revenue and Ebitda, with a modest increase in ARPU. The recent equity raise aims to alleviate financial strain.
Nokia April-June sales drop after record 2023, pins hope on Vi deal
Nokia and Ericsson have reported a 68% YoY fall in India net sales in Q2, 2024, with Reliance Jio and Bharti Airtel cutting down on network capex spends after completing their pan-India 5G rollouts. To revive their sales in India and support global growth, the companies will need to rely on fresh 4G and 5G gear supply deals with Vodafone Idea.
ATC Telecom Infra sells 2.8% stake in Voda Idea for ₹1,840 crore
ATC Telecom Infrastructure sold a 2.8% stake to Vodafone Idea, worth ₹1,840 crore, in an open market transaction. Citigroup Global bought shares worth ₹611 crore, with other buyers remaining unknown. Last month, ATC converted debentures allotted by Vodafone Idea into equity, and in January 2024, Canada's Brookfield acquired ATC's India unit in a $2.5 billion deal. Vi recently raised ₹18,000 crore through a follow-on public offer, priced at ₹10-11 per share.
Voda Idea a national asset, FPO sets stage for 2.0: KM Birla
“Vi is not just a telecom company. It’s a national asset with 215 million users and about 8000 MHz spectrum. That so many marquee investors participated in this equity issuance is a testament to the government’s vision of a digital India,” Birla said in an official statement following Vi’s FPO listing on the NSE Thursday.
Reliance Jio outpaces Airtel in March user adds, Vi cedes more ground: Trai
As per Friday's release Airtel recorded the highest percentage of active subscribers on its network at 99.91%. Active, or visitor location register (VLR), data indicates the number of mobile users regularly using a mobile network.
Vi's Rs 18,000-cr fundraise will increase competition, but it's good for Indian telecom, says Airtel's Gopal Vittal
The Airtel managing director said that the telecom industry urgently needs substantial tariff repair, ideally via multiple rounds of price hikes to boost average revenue per user (ARPU) to the Rs 300 level as the current returns are way too low.
Indus Towers may benefit if Vi gets money and invests: Analysts
Cash-strapped Vi said it will open a sale of new shares on April 18 and close on April 22 to raise up to ₹18,000 crore. This will be closely followed by a ₹25,000-crore fundraising via debt. The company has already approved raising ₹2,075 crore from a promoter entity through a preferential share issue.
Vodafone Idea converts ATC India’s residual OCDs into equity
The conversion follows ATC calling on Vi yesterday to convert the remaining 1,600 OCDs – out of the 16,000 originally issued to it by the telco — into 160 million fully-paid equity shares.
UK’s Vodafone offers ‘no comment’ on Voda Idea backing
“The only position which Vodafone Group has taken and that is because of their own shareholders who have said that please ringfence the Indian operations with Indian assets. So, their source of funding is limited to their stake in Indus and generally if one has to look at monetization of Indus, then they would want Indus to get to its fair value. It has actually re-rated quite a lot.”
Telcos go slow on content spends; investment towards buying content falls 12% in FY24
In the last few years, telecom operators have been heavily focused on acquiring content from TV broadcasters, besides partnering with streaming platforms, to build stickiness and drive data consumption.
FPO funds to take care of Vi’s capex needs for 3 years: Akshaya Moondra, CEO
The balance sheet doesn’t pose any worries, with bank debt at less than Rs 4,500 crore, Moondra said, adding that the FPO will raise enough money to meet capital expenditure needs for three years, with 4G expansion the priority. This will help narrow and ultimately stem subscriber losses and lead to a financial turnaround.
Vi expedites talks with Nokia and Ericsson for 4G network upgrade, may include 5G deals too
Vodafone Idea rushes talks with Nokia, Ericsson for 4G upgrade. 5G orders expected after spectrum auction, elections. Telco focuses on network expansion and market share growth.
Vodafone Idea launches Vi Movies and TV app for all-in-one entertainment
Vodafone Idea launched Vi Movies and TV app for subscribers in New Delhi, providing access to over 13 OTT apps and 400+ live TV channels. Priced at Rs 202 for prepaid and Rs 199 for postpaid users, the app simplifies viewing experiences with one subscription for multiple platforms.
Jio, Airtel SG&A costs rise signals cut-throat competition for acquiring high-value customers
As per company data and ICICI Securities estimates, Jio and Airtel's SG&A costs have risen 4.2% and 3.2% on-quarter to ₹1,455 crore and ₹2,805.6 crore, respectively, in the April-June period. Vi's quarterly SG&A expenses, in turn, have declined 3.2% sequentially to ₹1,135.4 crore, company data and IIFL Securities estimates showed.
Vi to renew tech outsourcing deal with IBM for about $1 billion
Renewal of the tech outsourcing deal comes even as Vi's board meets Saturday to consider raising Rs 20,000 crore via a preferential share issue. Earlier this week, Vi's shareholders approved a proposal to raise this capital through equity and equity-linked instruments.
Vi board meets Saturday to discuss Rs 20,000 cr fundraise
Vodafone Idea (Vi) plans to raise funds via a preferential share issue on April 6, following shareholders' approval of a proposal to raise ₹20,000 crore through equity and equity-linked instruments. The company expects to complete the equity fund raise by the end of June, with promoters expected to infuse around ₹2,000 crore.
Vodafone Idea launches cloud gaming platform in partnership with CareGame
Vodafone Idea launched a cloud gaming platform in partnership with CareGame, offering premium AAA games in a "try-n-buy" model with a free trial. Subscription prices are Rs 100 for postpaid and Rs 104 for prepaid users. The service includes popular games like Asphalt 9 and can be accessed on Android and iOS through Vi Web and App.
Vi’s Rs 2000 crore preferential issue to kickstart larger infusion plan
Vodafone Idea was formed by the merger of Aditya Birla Group’s Idea Cellular and the India unit of Vodafone Plc in 2018. The board also approved an increase in authorised share capital to Rs 1 lakh crore from Rs 75,000 crore.
Stars are aligning! Vodafone Idea share price targets increase after tariff hike
Vodafone Idea's target price sees a boost post-tariff hike, reflecting industry trends. Kotak Equities emphasizes low ARPU in India and the need for Jio to seize monetization opportunities.
Telcos urge global vendors to absorb duty hike
Bharti Airtel, Reliance Jio, and Vodafone Idea pressed Nokia, Ericsson, and Samsung to absorb a new 5% customs duty hike on PCBAs. They claimed it would affect their 4G/5G rollouts and dilution of tariff hike benefits. Jio and Airtel are also preparing for significant 5G network gear investments.
Vi allots Rs 615 crore of shares to Nokia, Ericsson via preferential issue
Vi added that following this allotment, the telco’s paid-up share capital stands increased to Rs 684,540,864,730, comprising 68,454,086,473 equity shares of the face value of Rs 10 each.
Bharti Airtel hasn't lost any 5G users after recent tariff hike, says MD
Bharti Airtel has increased its 5G user base to 90 million, with no significant dropouts despite a tariff hike. A slight consolidation in 2G SIM users was noted. The company plans to roll out 5G-based fixed wireless access services and maintains that any merger discussions involving Nxtra Data and Indus Towers are speculative.
ET Explains: All about vRAN and what it means for Vi
Vodafone Idea (Vi) has completed trials using Samsung's virtualised RAN (vRAN) technology, which is expected to bring substantial cost savings to the telco compared to legacy hardware infrastructure. vRAN is a technology that allows for the complete running of baseband functions as software on commonly available hardware, reducing server or processor capacity at sites. It also allows for the centralisation of some processing functions to local nodes, reducing server or processor capacity at sites.
Indus expects Vi to clear full dues worth Rs 5,700 cr soon, open to payment in tranches
Indus Towers anticipates Vodafone Idea clearing its Rs 5,700 crore dues soon, potentially in one payment or in installments, following VIL's fundraising. Indus Towers' CEO expresses optimism, highlighting their support for VIL's growth plans, including 5G rollout. VIL aims to raise Rs 45,000 crore, partly through equity and debt.
Vi 2.0: Vodafone Idea's Rs 18,000 crore fundraise a 'fresh lease of life', says Kumar Mangalam Birla
Aditya Birla Group chairman Kumar Mangalam Birla expressed optimism about Vodafone Idea's future after the company raised Rs 18,000 crore. Birla called it a "fresh lease of life" for the telco, which has been facing challenges from competitors like Reliance Jio and Bharti Airtel. The funds will be used to improve the network, densify it, and selectively introduce 5G services, marking the beginning of 'Vi 2.0'. The company's overall debt now stands at Rs 4,000 crore, which Birla considers low.
DoT allocates airwaves to all three telecom companies
The Department of Telecommunications (DoT) has allocated spectrum to all three private telecom operators who purchased airwaves in the June auction. The companies had made the upfront payments on July 26, allowing DoT to garner over ₹1,000 crore from the spectrum sale.
Investors warm up to Vi, but put the fundraising call on hold amid stock fluctuation
Vi plans to raise ₹45,000 crore by the June quarter. Its board last month approved raising ₹20,000 crore via equity or equity-linked instruments. The telco plans to raise another ₹25,000 crore in loans.
Vi eyes 40% of revenues from 5G in over two years
In its presentation, the telecom JV between UK's Vodafone and India's Aditya Birla Group, said its delayed entry into the country's next-gen wireless broadband turf would help it access the latest advances in 5G technology in a cost-efficient way. It added that 90% of its radio gear is already 5G-ready. Another strategic focus is refarming its airwaves in the 900 MHz and 2100 MHz bands as part of plans to expand the telco's 4G coverage in its 17 priority markets.
Won’t renew fractional spectrum which can’t be used for new tech: Voda Idea
Vodafone Idea (Vi) surrenders fractional spectrum in 900MHz and 1800MHz bands in select circles including Uttar Pradesh (West) and West Bengal due to incompatibility with new network technology. Vi plans to fully switch off its 3G network in FY25 and refarm its airwaves for 4G, boosting overall network capacity.
D-St punishes Vi amid skepticism over fundraising
The telco has made several efforts to raise capital in the past. Its board had in September 2020 given approval to raise ₹25,000 crore including in equity, and the company had held talks with banks for debt funding. But these efforts have not been successful so far.
FY25 will see a 7-9 pc growth in two-wheeler sales, down from 9.8 pc in FY24
The CareEdge Ratings report predicts the two-wheeler industry's volume growth in FY2025 to be 7-9 per cent, lower than the 9.8 per cent recorded in FY2024. Factors driving growth include increased Electric Vehicle sales, the Electric Mobility Promotion Scheme 2024, expected interest rate cuts in the second half of FY25, and strong demand for new model launches. Recovery in exports, a favorable monsoon, and improved rural consumer sentiment are also key growth drivers.
BSNL's employees union urges government action to utilize Vi's 4G network
The state-run firm’s 4G network is to be deployed by TCS in a phased manner and a few thousand sites are already up and running in a few circles. But since the network is not present pan-India, the telco has been losing customers.
Voda-Idea deploys network to improve connectivity across Kolkata underwater metro
With this, Vi customers travelling via the underwater metro rail service will experience uninterrupted connectivity across the entire 16.6-kilometre route of the Green Line metro.
GTA VI may use cryptocurrency as payment methods, here's what you should know
GTA VI, that is slated to be released in 2025, may use cryptocurrency as a payment type for in-game purchases, if reports are to be believed. This comes as a surprise for gaming geeks as this was previously unheard of in previous versions of Grand Theft Auto games.
Telcos pay Rs 1,000 crore for first installment of 5G spectrum
The Department of Telecommunications received over Rs 1,000 crore from Bharti Airtel, Vodafone Idea, and Reliance Jio for their 5G spectrum purchases. All three telecom companies opted for annual installments. Airtel made the highest first installment payment, followed by Vodafone Idea, and Reliance Jio. The telcos will receive their allocated frequencies shortly for their new spectrum purchases.
