Vodafone Idea asks for an extension to pay statutory obligations

For March FY23 quarter and June FY24 quarter, the telecom operator reportedly requests an extension until the end of December to pay the remaining 50% of licence fees and 90% of spectrum usage charges.

In order to pay its statutory dues, Vodafone Idea (Vi) has asked the Department of Telecommunications (DoT) for further time. The telecom department wrote to Vi on July 21 because the carrier has not paid the statutory dues to the DoT. In response, Vi stated that it is experiencing cash challenges as a result of the delayed funding. According to Vi, it will be simpler for the telco to raise money if the government moves forward with the dues to equity conversion. That doesn't appear to be the case now, though. Since the government acquired an ownership position in the business many months ago, the telco has been unable to obtain any money.

For March FY23 quarter and June FY24 quarter, the telecom operator reportedly requests an extension until the end of December to pay the remaining 50% of licence fees and 90% of spectrum usage charges. Vodafone Idea informed DoT that it is focused on raising money and that its promoters are dedicated to helping the business. The promoters aren't very excited to invest more money in the business, though. Because the promoters don't want to put any more money into the business, Vi has generally been unable to raise money thus far.

Vodafone Idea informed DoT that it is focused on raising money and that its promoters are dedicated to helping the business. The promoters aren't very excited to invest more money in the business, though. Because the promoters don't want to put any more money into the business, Vi has generally been unable to raise money thus far.

The most recent telecom subscription data, which was made public by the Telecom Regulatory Authority of India (TRAI) earlier this month, showed that Vodafone Idea’s subscriber base was still declining. In May 2023, the telecom lost 2,815,226 wireless subscribers, a huge reduction. For the telco, which has been battling to keep its customer base for years, this is the 26th month in a row that it has experienced a decline.

Competing telecommunications companies are capitalising on growing their market share with 5G and improved 4G network experiences in response to Vodafone Idea’s ongoing subscriber losses. Vodafone Idea has not been successful in halting the downward trend and gaining new customers.

The main reason behind the decline in subscribers is that Vodafone Idea is the only significant telecom provider in India that has not yet introduced 5G services. Telecom companies must commercially introduce 5G services in both metro and non-metro circles in accordance with government regulations.

VoicenData had earlier reported that Vodafone Idea and Adani Data Networks have reportedly contacted the Department of Telecommunications (DoT) to ask for a delay in order to meet the deadline for launching 5G services.

This rollout was initially scheduled to be completed by August 16. Even though Vodafone Idea’s 5G rollout has been delayed owing to funding concerns, Adani Group is still working on putting a 5G network in place in the 26 GHz band for captive networks.