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The Silicon Review Asia

Vodafone (India) Headed For Liquidation

Vodafone (India) Headed For Liquidation

India’s second largest telecom company, Vodafone, may be headed for liquidation. Nick Read, CEO of Vodafone said in London on Monday that they may have to liquidate if the government doesn’t ease off on the mobile spectrum fees.

According to Read, the company’s future in India could be in peril unless the government stopped hitting operators with high taxes and charges. The Supreme Court has asked operators to pay over Rs.92,000 crores in past dues.

Vodafone has formed a joint venture with Aditya Birla’s ‘Idea Cellular’ in 2018.  It was a very challenging situation but Vodafone still had 30 crore customers and held 30 percent of the market share.

Vodafone has requested the government for a relief package encompassing a two-year moratorium on spectrum payments, lower license fees and taxes and waiving of interest and penalties in the Supreme Court case that is centered around regulatory fees.

Vodafone India denies reports to the British Media that Read had communicated to the Indian Government. The arrival of Reliance Jio Infocomm Limited in 2016 put the industry in a price war. Read said that Vodafone was not committing any more equity to India.

Vodafone CEO remarks that sustaining a business in India is challenging and if the remedies being suggested are not accepted, moving into liquidation is the only scenario. Vodafone is the largest foreign direct investor in India. A government committee is reviewing the request and Vodafone is expected to hear more in the upcoming weeks.

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