Vodafone Thought (Vi), a number one telecom firm in India with over 202 million energetic subscribers, might quickly be in deep trouble. The cash-strapped telecom operator is below the specter of shedding entry to some cellular towers within the close to future. Indus Towers, a telecom infra firm, has advised TRAI (Telecom Regulatory Authority of India) that it could limit companies to Vodafone Thought due to the “willful and steady” failure to make contractual funds, stated ET in a report. Vodafone Thought has not been making well timed funds to Indus Towers and that’s hurting the corporate’s monetary scenario.
Learn Extra – Delay in Tariff Hike Expediting Transition to Jio and Airtel Duopoly: Report
This isn’t the primary time Indus Towers has threatened Vi about shutting entry to its towers. If Indus restricts Vi’s entry to its towers, that might imply critical protection points for Vi prospects. Additional, that might speed up the subscriber addition for Jio and Airtel within the brief time period as prospects will not have another possibility. Vi’s postpaid subscriber base would additionally come below strain to depart the telco’s community and join the opponents.
As of September 30, 2023, Vi owed Indus Towers Rs 7,864.5 crore (together with curiosity). It’s price noting right here that Vi wrote a letter to TRAI on September 29, 2023, saying that it was unable to fulfil its month-to-month contractual cost obligations to the tower firm. Nevertheless, Indus Towers has bashed the letter despatched by Vi saying that the telco’s letter is deceptive and misleading. Indus additionally stated that Vi is simply making an attempt to save lots of itself from non-compliance with its contractual obligations and keep away from the implications of such breaches utilizing the workplace of TRAI. Indus Towers will seemingly take a authorized strategy right here and search funds from Vi as quickly as attainable.
Learn Extra – Jio Raises $2 Billion Offshore Loans
The telco is discovering it arduous to make funds due to its monetary situation. Vodafone Thought has not been capable of increase funds in any respect. However that’s hurting the distributors which might be ready to be paid by Vi. No matter cash Vi is getting, the telco is utilizing to make funds to banks and monetary lenders, as a result of they will probably take the corporate to the chapter courtroom, one thing which the distributors cannot do.