Vodafone Idea expands network and raises funds: CEO


(Representation image)

Highlights

  • The government announced certain benefits for telecommunications companies with large unpaid AGR dues last week.
  • Vodafone Idea will fundraise, grow and focus on generating good returns for its investors.
  • The CEO of the company sees ARPUs increasing across the industry, where he believes ARPUs should already be Rs. 200.

On September 16, the government announced certain benefits for telecommunications companies, including a 4-year moratorium on AGR dues, 100% foreign direct investment in telecommunications through the automatic channel, and a change in the calculation of gross income. adjusted.

Vodafone Idea Limited is one of the main beneficiaries of this announcement. The company was considering a possible sale of assets in an industry with only 3 major players remaining – Reliance Jio, Airtel and Vodafone Idea.

The company, however, believes it is on the right track to get back on its feet with CEO Ravinder Takkar saying the company will look to grow and grow. He believes the 4-year moratorium will leave enough cash bandwidth for the company to make investments, increase capacity, introduce new services. The company will also expand its network and participate in the 5G auction.

With that, the company is basically saying that the government was able to address the concerns it had. In addition, Mr. Ravinder is also confident that the company will be able to raise funds. He believes the company will raise funds from existing investors or new investors, or both, and disclose details as they are finalized.

Mr Takkar sees ARPUs increasing to Rs. 200 and then gradually to Rs. 300 and said Vodafone Idea will not hesitate to increase the rates, but will only do so if others follow suit.

He suggests that he will disclose the fundraiser as well as the business plans soon. The good news for the company and the industry is that the company will survive and continue to do business in India and there will be 3 players in the market.

Mr Takkar says the company is looking to deliver good returns to investors and being number 1 is not the goal. The share price has risen 70% over the past month, providing an exceptional return for investors.


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