📶 Mobile network operators - Discussion Thread 📶

[BangaloreaN]

Vodafone Idea To Roll Out 5G In Mumbai By March; Delhi, Bengaluru And Other Cities By April

Vodafone Idea is set to roll out 5G services in major cities, leveraging the mid band and mmWave spectrum acquired in the 2022 auction to boost connectivity and performance.


Vodafone Idea Ltd. on Tuesday announced that it is planning to commercially launch its 5G services in Mumbai in March. The telco further said that it will launch its 5G services for the states of Delhi, Bengaluru, Chandigarh, and Patna in April.

"The commercial launch of 5G services in Mumbai is planned for March 2025 and Delhi, Bangalore, Chandigarh and Patna for April 2025," the telco said in an exchange filing.
The telecom giant noted that it has acquired 5G spectrum in the mid band (3300 MHz) and mmWave (26 GHz) in the July 2022 spectrum auction and is working towards launch of 5G services.
In addition, it said that the government's waiver of bank guarantees for past spectrum purchases would go a long way in ensuring expansion of network coverage in India.
VIL's consolidated net loss narrowed in the third quarter of financial year 2024-25. The telecom firm posted a loss of Rs 6,609 crore in the October–December period in comparison to Rs 7,175.9 crore in the preceding quarter.

The company has said that it has rapidly expanded its 4G coverage and capacity, adding that it is on track to achieve our 4G population coverage target of 110 crore by March 2025 and plan to further increase it to 120 crore in the future.
"We are driving investments and the velocity of capex deployment is set to accelerate in the coming quarters," Chief Executive Officer Akshaya Moondra said. "Concurrently, the phased rollout of 5G services is underway, targeting key geographies."
"With the recent equity infusion of Rs 1,910 crore from one of our promoters, we have now secured approximately Rs 26,000 crore in fresh equity capital over the past 10 months," the CEO said.

[BangaloreaN]

Vodafone Idea Back in Drama Yet Again

It's no secret that the management of Vi has reached out to the government for further dues to equity conversion. The telco is reportedly looking to give away more equity in the company to the government, increasing the center's stake in the company to 49%.



Vodafone Idea (Vi), while is a struggling telecom operator, can't be counted out of the market in any manner. The telco has managed to raise significant funds in early phase of 2024, and is hopeful of raising more in the near future via debt. Vi was counting on further govermment support on the matter of AGR (adjusted gross reveue) dues and spectrum dues, but that's unlikely to come now. As Business Standard has already reported, the government is not keen on extending support to Vi if it can't raise investments from the market.

VIL Seeks Relief in the Form of Dues to Equity Conversion

It's no secret that the management of Vi has reached out to the government for further dues to equity conversion. The telco is reportedly looking to give away more equity in the company to the government, increasing the center's stake in the company to 49%. The government has spoken several times in the past about its involvement in Vi.
Vodafone Idea is only in the interests of the government to keep India a four player telecom market. There's no business interest for the government from Vi. However, the center won't just help the telco blindly. VIL (Vodafone Idea Limited) needs to tackle the issue of further fund raising. If Vi is able to raise more funds, the telco would likely get help from the center, a demand that has been placed in the past as well.

Vodafone Idea Back in the Drama

Vodafone Idea has been in the drama for several years. Some times it is the telco's survival, some times it is the dues to equity conversion, some times it is debt towards companies infrastructure companies like Indus Towers, Nokia, Ericsson, and more, some times it is about 5G rollout, and then some.


Vodafone Idea Proposes Spectrum Surrender to Cut Bank Guarantee Needs: Report

Vi requests relief from spectrum obligations, proposing alternatives to cover outstanding auction payments and urging the government to convert dues into equity.



Vodafone Idea (Vi) has written to the Department of Telecommunications (DoT) to allow it to surrender some spectrum acquired in auctions before 2021, which could reduce its bank guarantee (BG) requirement for the March 2015 auction from Rs 6,091 crore to Rs 2,900 crore, ET Telecom has reported, saying it has seen a copy of the letter.
Vi Proposes Alternatives to Cover Payment Shortfall
In a letter to DoT on March 10, Vi reportedly highlighted its inability to furnish the Rs 6,091-crore BG or pay Rs 5,493 crore in cash to cover a payment shortfall from the 2015 auction. The telco has suggested some alternatives to the government to address the securitisation requirement, including offsetting this shortfall against excess payments made in past auctions or cash deposits furnished towards regulatory compliance, citing Rs 9,900 crore from 2016 and Rs 8,800 crore from 2012 and 2014 auctions.
"...the company has been in discussion with DoT on surrendering some spectrum it acquired in auctions conducted prior to 2021. Based on the proposal shared by the company, the overall spectrum obligation would reduce by Rs 4,800 crore, out of which the (reduction in) spectrum obligation for the March 2015 auction is expected to be Rs 3,200 crore," Vi wrote in the March 10 letter to DoT secretary Neeraj Mittal, according to the report.

Vi Highlights Existing Securitisation Options
In its letter, Vi also noted that it has already provided DoT with BGs worth Rs 5,800 crore for various regulatory matters and deposited Rs 2,450 crore in cash during the internal restructuring of erstwhile Vodafone Group entities in December 2015. This brings the total to Rs 8,250 crore—exceeding the required securitization for the 2015 auction. The company has urged DoT to consider these funds and refrain from taking coercive action.
"Hence, the total amount of Rs 8,250 crore (Rs 5,800 crore + Rs 2,450 crore) available with DoT is more than the securitisation required by it for the March 2015 spectrum auction," Vi said, as per the report.
Vi claimed in its letter that the total securitisation options available with DoT amount to Rs 26,950 crore (Rs 8,250 crore, plus the excess payments made in 2012, 2014 and 2016). "We sincerely hope and request DoT to consider the above options favourably" and not take any coercive action, it said, according to the report.
Vi Seeks Government Approval for Equity Conversion
In a separate letter on March 11, Vi CEO Akshaya Moondra sought urgent approval for converting the telco's pending regulatory dues—including adjusted gross revenue (AGR) and spectrum payments—into government equity. If approved, this could increase the government's stake in Vi from 22.6 percent to 49 percent.
Vi faces a looming financial crunch, with regulatory payments set to surge after the AGR moratorium ends in September. It must pay Rs 29,100 crore by March 2026, rising to an estimated Rs 43,000 crore annually from FY27 to FY31. As of December, its AGR dues stood at Rs 70,000 crore, while its cash reserves were Rs 12,090 crore, the report further said.
Government's Recent Relief
The government recently waived Rs 33,000 crore in BGs for all three private telecom operators—Reliance Jio, Bharti Airtel, and Vi—with Vi receiving the largest relief of Rs 24,800 crore. While BG requirements for auctions from 2012 to 2021 have been relaxed under specific conditions, Vi remains obligated to meet its outstanding 2015 auction payment.

[BangaloreaN]

Government stake in Vodafone Idea to rise to 48.99% as spectrum dues convert to equity

The company received the communication today and is required to complete the issuance within 30 days, subject to approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI).


The Indian government is set to increase its stake in Vodafone Idea Limited (Vi) to approximately 48.99% following the conversion of outstanding spectrum auction dues into equity shares, the company disclosed today, March 30. This move aligns with the telecom sector relief package announced in September 2021.

In an order dated March 29, the Ministry of Communications directed Vodafone Idea to issue equity shares worth ₹36,950 crore to the government under Section 62(4) of the Companies Act, 2013. The company received the communication today and is required to complete the issuance within 30 days, subject to approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI).
The allocation will involve issuing 3,695 crore equity shares with a face value of ₹10 each at an issue price of ₹10 per share. The pricing has been determined based on the higher of the volume-weighted price over the last 90 trading days or the last 10 trading days before February 26, 2025, in accordance with Section 53 of the Companies Act, which prohibits issuing shares below their par value.

Following this transaction, the government’s holding in Vodafone Idea will rise from 22.60% to nearly 48.99%. However, the company assured that the promoters will continue to retain operational control.

“The company will take all necessary steps to execute the share issuance upon receipt of requisite approvals,” Vodafone Idea stated.

[BangaloreaN]

Vodafone Idea: The Government’s Bottomless Pit


Government is bailing out Vodafone Idea for the second time. With each passing day, it becomes clear that this isn’t an economic revival story—it’s an unending saga of state-sponsored corporate welfare.



The Indian government has entangled itself in a financial quagmire called Vodafone Idea (Vi), pouring taxpayer money into a failing telecom giant with no foreseeable escape. While the burden of an unrecoverable investment weighs on the state, the incumbent promoter group, led by Birla, enjoys an unbroken streak of operational control and strategic benefits—without accountability.

As of December 2024, Vi’s total debt stood at an astronomical ₹2.3 lakh crore—a sum that would be impossible for the firm to repay. This includes ₹77,000 crore in adjusted gross revenue (AGR) dues and ₹1.4 lakh crore in spectrum liabilities, all payable directly to the government. The brutal reality is that Vi is never likely to clear its debt, yet the government continues to sustain this sinking ship with public funds.

The reason? A mix of economic fear-mongering and corporate favoritism. If Vi collapses, it would undoubtedly trigger a market panic, tarnish the government’s reputation, and send a chilling signal to investors. Moreover, a Vi downfall would lead to widespread job losses, strain the banking system, and leave 200 million subscribers in chaos. To prevent this, the government scrambles to keep Vi alive at any cost—even if it means abandoning financial prudence and distorting market fairness.

The Great Equity Conversion Hoax

The latest chapter in this saga sees the government increasing its stake in Vi from 23 percent to a staggering 49 percent by converting its debt into equity. However, rather than bailing out taxpayers, this maneuver is a mere smokescreen. Despite its newfound majority stake, the government gains no operational control—the Birlas remain firmly in charge. The illusion of state intervention as a stabilizing force is nothing but a ruse to shield corporate interests while taxpayers foot the bill.

What’s worse, the equity conversion itself is an act of financial absurdity. Vi will issue 3,695 crore shares at a face value of ₹10 per share, while the government is set to acquire them at a premium of 47 percent over market value—a blatant overvaluation that defies logic. India's Companies Act prohibits conversion of equity below par face value. But what is the meaning of par value for a company whose net worth is negative, debt and liabilities are far greater than its assets, and which requires a bailout every two years? In such a scenario, what compelled the government to buy Vi shares at ₹10?

Corporate Welfare Masquerading as Economic StrategyThis isn’t the government’s first lifeline to Vi. In 2021, a so-called ‘relief package’ was rolled out, which in February 2023 saw ₹6,133 crore of Vi’s interest dues being converted into equity. Even then, this rescue package was nothing but a free pass for Vi’s promoters to continue running the company, with taxpayers absorbing the losses.

As the moratorium on repayments ends in September 2025, Vi is expected to cough up ₹40,000 crore annually—an impossibility given its financial health. But thanks to this latest bailout, the government has merely extended the inevitable by another two years, ensuring that the telecom giant remains a state-sponsored liability well into the future. Vi now has the largest investor base in the country, with nearly 6 million public shareholders holding the stock. Do they genuinely believe that the government has a magic wand?

The Bitter Endgame: No Exit, No Strategy

So, what’s the government’s grand plan? There isn’t one. The leadership clings to the fragile hope that, within the next two years, it will somehow offload its equity stake to a private buyer. But the reality is stark—no investor will touch Vi unless the debt burden is dramatically reduced or the government is willing to take a colossal loss. This reckless gamble will only lead to deeper financial ruin, with taxpayers once again shouldering the burden of corporate mismanagement.

With each passing day, it becomes clearer that this isn’t an economic revival story—it’s an unending saga of state-sponsored corporate welfare. The Indian government has shackled itself to Vodafone Idea.

Uncomfortable Questions For The Telecom Minister

Why hasn’t the government asked the operational promoters to issue shares to its other group companies and raise funds from them instead of using public money?

If the incumbent operational promoters refuse to bring in fresh capital and now hold less than 10 percent in Vi, why does the government continue to grant them operational control? Why the special treatment?

With the government stake rising to 49 percent, will there be a CAG audit of Vi’s CapEx and OpEx to uncover how taxpayer money is being spent?

The Tata Group was forced to repay ₹50,000 crore ($7.3 billion) to lenders and the government to clear its debt before Bharti Airtel took over its mobile services business. Reliance Communications was allowed to collapse. Why is Vi being shielded?