Vi (Vodafone Idea) Makes Big Announcement

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Vi (Vodafone Idea) Makes Big Announcement.Vodafone Idea’s non-executive chairman Himanshu Kapania said that the telco’s management is working out a new business plan after the relief package introduced by the government, and is also talking to other stakeholders for funding requirements.

“Once the exact guidelines are available, the management is working out a new business plan and will come back to the board for the exact financial requirement of the company. It is also speaking to other stakeholders and once the board does give approval, we will come back to shareholders of the exact need of the funding going forward,” Kapania said while responding to shareholders’ queries during the AGM on Wednesday.

The package will provide "short term" financial relief to the company and underlying structural reforms will in the long term further strengthen VIL’s operations, he said.

Kapania said that the relief package “is one the key big factors” that is going to influence the company as well as the sector, especially the liquidity it is offering. “The impact of the package will be seen on the sector and VIL . We will wait to see final guidelines that will be issued by the government.”

Kapania, who recently took over from Kumar Mangalam Birla after he stepped down from the position, said that the relief package is going to be important to take the sector forward and is going to improve the liquidity of the company.

“...it is sending out a strong message that the government is extremely keen to ensure that there is 3+ players in the industry; and it has done significant transformational work which will improve overall working of the telecom issues,” he added.

The moratorium on all dues will enable Vodafone Idea to further enable its 4G coverage and capacity and provider deeper rural connect. “It will also allow the brand to invest in new technologies and services including 5G whenever the ecosystem is ready and spectrum affordable,” he said.

Terming reforms “path breaking”, Kapania said that the move will address some long standing issues in the sector and will help telcos manage their free cash flows and enable investable funds in the hands of telcos for fresh capex deployment in building long term digital infrastructure.

“These reforms will promote ease of doing business in the country by abolishing some of the archaic processes affecting telecom business operations. Other procedural reforms will be the key to smooth business operations and faster delivery of services to customers.”

Vodafone Idea again reiterated the need to hike tariffs saying that the company is operating at “unsustainable tariffs”. “... there is a need to increase tariffs which is key for the improvement of the performance of the company,” Kapania said.

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