Vodafone Idea has been struggling with continuously falling market share, and ever-rising AGR and Debt. But recently the telecom industry has received a lot of relief from the government, which has been the most beneficial for Vodafone Idea.
What the Government Believes
The Minister of Communications, Jyotiraditya Scindia said that the government being the largest single owner, has roughly 22.60 percent stake in the company and the company has around 18 percent market share in the telecom Industry, and has expressed confidence in both 5G and 4G expansion by the company.
Minister said that they believe there should be healthy competition and that there are very few telecom markets in the world that have four players. He also pointed out the government bank guarantee relief as an indication of continued commitment by the government.
Recent Developments in the Telecom Sector
In December 2024, the Government waived off requirements for telecom operators to provide bank guarantees for spectrum purchased in 2012, 2014, 2015, 2016 and 2021. It was estimated that the relief could amount to Rs 30,000 Crore out of which Vodafone Idea is estimated to be the most benefited, around 24,000 Crore.
Currently, the Government is looking to waive off 50 percent of Interest and 100 percent of penalties and interest on penalties on the AGR dues, which will significantly help the telecom industry.
Also read: Jio Finance at 86 PE: Overvalued or Growth Stock in the Making?
Vodafone Idea Starts 5G Services in Mumbai
The company has launched 5G Services in Mumbai with unmatched value. The company said that it will be delivering next-generation connectivity to customers in the city with widespread coverage at competitive pricing. The introductory offer provides unlimited 5G data on plans starting at just Rs.299, making it the most competitively priced option in the market.
Financial Highlights
The company reported a 3.99 percent YoY increase in revenue from Rs. 10,673 Crore in Q3FY24 to Rs. 11,117 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 1.69 percent in revenue from Rs. 10,932 Crore in the previous quarter.
Their Net loss saw a marginal decrease YoY from Rs. 6,986 Crore to Rs. 6,609 Crore for the same period. On a QoQ basis, the company reported a decrease in Net loss from Rs. 7,176 Crore in the previous quarter.
About the Company
Vodafone Idea Limited (Vi) is a leading telecom service provider in India, formed by the merger of Vodafone India and Idea Cellular in 2018. Headquartered in Mumbai and Gandhinagar, the company offers mobile voice and data services, with a strong presence in 4G and expanding 5G capabilities.
Written By Abhishek Das
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