Skip to content
Search

Latest Stories

Vodafone Idea seeks time to pay mobile network fees

VODAFONE’S India unit has urged the Indian government to allow more time to the telecom company to pay mobile network fees.

Its creditor banks have also requested the government to be little flexible with the firm.


The debt-ridden joint venture has long been facing tough competition in the Indian market from Bharti Airtel and Reliance Jio.

In an analysts call on Friday (2), Vodafone Idea said it has requested the Department of Telecommunications for a year's extension to pay Rs. 82.9 billion (£804 million) in mobile network fees due in April 2022.

The firm cited low tariff rates and other business environment challenges for its inability to generate sufficient cash from its operations.

"I think it is only reasonable to say to the government that they have to provide an extension to the moratorium until these pricing-related issues and the stress in the industry and the sector is removed," Vodafone Idea chief executive officer Ravinder Takkar said.

Moreover, Indian banks with large outstanding loans to the company have also reportedly written to the finance ministry expressing fears about the venture slipping into bankruptcy, if more time is not granted for the upcoming payments.

Vodafone Idea's total debt stood at Rs. 1.86 trillion (£18.05bn) at the end of March 2021.

Besides, the company has been unable to meet its fundraising target of Rs. 250 billion(£2.4bn) announced last September.

Telecom firms in India are struggling for survival since 2016, when the Mukesh Ambani-led Reliance Jio was launched.

Ambani's promise of providing dirt-cheap internet and free calls to Indians triggered a brutal price war in the country.

"I think the biggest hurdle is that the overall industry is under stress because of the pricing situation," Takkar said, echoing comments by Sunil Mittal, the billionaire chairman of Bharti Airtel.

"To say the telecom industry is in a bit of trouble is an understatement," Mittal said on Thursday (1).

Vodafone Idea is a partnership between British telecom major Vodafone and Indian conglomerate Aditya Birla.

The firm reported a net loss of Rs. 69.85 billion (£677m) for the quarter ending March 2021.

More For You

JLR-Getty

A logo is pictured outside a Jaguar Land Rover new car show room in Tonbridge, south east England. (Photo: Getty Images)

Getty Images

UK car exports to US rebound after trade deal

UK VEHICLE exports to the United States rose in July after a new trade deal between London and Washington reduced tariffs, industry data showed on Thursday.

According to the Society of Motor Manufacturers and Traders (SMMT), exports increased 6.8 per cent in July to nearly 10,000 units, following three consecutive months of decline.

Keep ReadingShow less
Relatives of jailed Briton appeal to UK minister in AgustaWestland row

Christian Michel

Relatives of jailed Briton appeal to UK minister in AgustaWestland row

THE family of Christian Michel, the British businessman accused of acting as a middleman in the AgustaWestland VVIP helicopter deal, has appealed to the UK government to push for his release from Delhi’s Tihar Jail.

Michel’s relatives met Foreign Office minister Catherine West in London on Tuesday (26). The Foreign, Commonwealth and Development Office (FCDO) said the minister listened to their concerns and updated them on ongoing steps being taken.

Keep ReadingShow less
Blackburn loses Issa empire as brothers move EG Group to US

Zuber and Mohsin Issa (Photo: LDRS)

Blackburn loses Issa empire as brothers move EG Group to US

ASIAN entrepreneurs Mohsin and Zuber Issa are moving the headquarters of their global forecourt company, EG Group, from Blackburn to the US in preparation for a major stock market listing in New York.

The firm confirmed that its main office will relocate to Charlotte, North Carolina, while a new base in Bolton, Greater Manchester, will handle its remaining UK operations, the Telegraph reported. The change brings an end to almost 25 years of the company being run from Blackburn.

Keep ReadingShow less
Migrant hotel workers call off strike after reaching agreement

Workers at Radisson Blu hotel in Canary Wharf

Migrant hotel workers call off strike after reaching agreement

WORKERS at the Radisson Blu hotel in Canary Wharf have cancelled a planned six-week strike after reaching an agreement that met all their demands.

The group of housekeepers, most of whom are migrant women from Nepal and members of the United Voices of the World (UVW) union, were due to begin industrial action on Sunday (31). It would have been the longest hotel strike in the UK since 1979, a statement said.

Keep ReadingShow less
enforcement directorate

The Enforcement Directorate searches were conducted at locations linked to the Gupta brothers, Piyoosh Goyal of World Window Group, and entities such as Sahara Computers and ITJ Retails Pvt Ltd.

Getty Images

India agency acts on South Africa request in Gupta brothers probe

INDIA's financial crime fighting agency, the Enforcement Directorate (ED) on Tuesday carried out searches at locations connected to the Gupta brothers of South Africa and their associates in a money laundering case.

The action followed a Mutual Legal Assistance Request (MLAR) received by India from South Africa in connection with the "state capture scam," reported PTI quoting sources.

Keep ReadingShow less