Here's why the TRAI Chairman is concerned about Vodafone Idea - Exclusive
The outgoing TRAI Chairman in his exit interview to CNBC-TV18's Ashmit Kumar also expressed worry over Vodafone Idea's eroding subscriber base.
PD Vaghela, the outgoing Chairman of the Telecom Regulatory Authority Of India (TRAI), in an exclusive interaction with CNBC-TV18 mentioned that he is concerned about the telecom operator not being able to roll out 5G services.
At the time of the launch of 5G services in October last year, Aditya Birla Group Chairperson Kumar Mangalam Birla had said that the company will be launching its 5G services soon. He reiterated that comment at an event in April this year.
However, Vodafone Idea has not shared a timeline for the launch yet.
The TRAI Chairman also expressed worry over Vodafone Idea's eroding subscriber base. Vodafone Idea lost 2.3 million subscribers and 1.8 million active mobile users in May 2023. As a result, Vodafone idea's active subscriber market share fell by 31 basis points.
The telecom operator recently made the payment of Rs 1,701 crore, including interest, to the Department of Telecom (DoT) with regard to the 2022 spectrum auction instalment.
Last month, the company said it proposed to pay the instalment of nearly Rs 1,680 crore to the DoT by availing a grace period of 30 days with interest. The company has managed to do so within a 30-day time period.
During the company's quarterly earnings update last month, it stated that it received a communication from a promoter group entity that in the event of any fund requirement for meeting its impending payment obligations, it will provide direct or indirect financial support to the extent of Rs 2,000 crore.
Shares of Vodafone Idea have corrected from the day's high and are currently trading 0.8 percent lower at Rs 12.
(Edited by : Hormaz Fatakia)
First Published: Sept 27, 2023 2:41 PM IST
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