Vodafone Idea chairman hopeful of govt support
Ailing telecom operator Vodafone Idea has flagged the industry's "unsustainable financial duress" in its latest annual report and hoped that the government would provide the necessary support to address "all structural issues" faced by the sector.
In the Chairman's letter to shareholders, Himanshu Kapania cited persistent challenges in the operating environment, amid "unsustainable pricing" and "hyper-competition" during FY21. Kapania expressed hope that government will support efforts to generate reasonable returns on massive investments.
"As the industry continues to remain under unsustainable financial duress, your company is hopeful that the government will provide the necessary support to address all structural issues faced by the sector," said Kapania who was elected by the VIL board as non-executive Chairman after Kumar
Mangalam Birla stepped down from the position, in early August.
VIL with a history of providing 25 years of mobile services to the country "is hopeful that the government will support its efforts to generate reasonable returns on their massive investments", he said.
Meanwhile, in its first case it has heard and dealt with under the IT Act 2000, the Rajasthan government on Monday imposed a fine of Rs 27 lakh on telecom company Vodafone Idea Ltd (VIL) on a data leak matter.
Cabinet may consider relief package for telecom sector
MUMBAI: The Union Cabinet is likely to consider and discuss a relief package for the sector on Wednesday, sources said.
The government has been in talks with several stakeholders, including banks, for a package for the sector as Vodafone Idea is in a beleaguered state with heavy losses and high debt and concerns have been raised over a possible duopoly in India telecom sector if it shuts. Further, it is also the most impacted telco due to the AGR claims of the government.
People in the know said that the government is of the view that competition must prevail in the sector and any chances of a duopoly should be averted.
Industry body BIF has also urged the government to consider the satcom segment too as part of any such package being proposed, as satellite communication is an integral part of digital communications. BIF said doing so would facilitate equal and proportionate growth and ensure level playing field for all.