Vodafone Idea, the beleaguered telecom joint venture, is finally looking beyond survival, Kumar Mangalam Birla, chairman of the Aditya Birla Group, noted amid the resolution of the long-pending Adjusted Gross Revenue (AGR) issue.
In his seventh annual reflection, Birla described AGR resolution as a turning point that has fundamentally altered Vodafone Idea’s operating environment.
Voda Idea looking beyond survival, says Birla
“For the first time in years, the fog has cleared, allowing the business to look beyond survival and focus on sustainable growth,” Birla wrote.
Vodafone Idea, created following the merger of UK-based Vodafone and India’s Idea Cellular in 2018, has weathered a long-period of uncertainty in India’s telecom history.
Burdened by AGR dues, intense competition, and operational challenges, Vodafone Idea’s future was uncertain, raising broader concerns about the country’s telecom sector.
Vodafone Idea got a breather from the government on payment of its AGR dues as the Cabinet decided to freeze them at ₹Rs 87,695 crore. The government had approved the payment plan for the company to clear its frozen AGR dues between FY32 and FY41.
As per the Supreme Court orders in October and November, the government has also begun the exercise to reassess the company’s AGR dues. Upon completion of the exercise, the final AGR amount of the company could be reduced as well, according to analysts and government officials.
“The Vodafone Idea experience underlines my belief that Tough Times Don’t Last. Tough Companies Do,” Birla wrote, attributing the commitment of employees, loyalty of customers and the belief of business partners and shareholders as the factors that carried Vodafone Idea through this turbulent and uncertain time in the company’s history.
“Equally vital was the government’s unflinching determination to revitalize the telecom sector, coupled with the firm conviction of the promoters on the long-term potential of the Indian telecom sector. A dogged focus on daily operations, service and network expansion, will now serve as the foundation for revival,” he said.
Birla emphasized the strategic importance of a competitive telecom industry for India’s digital future.
He stated, “A healthy, competitive telecom industry is essential to India’s digital future. India deserves 3 private telecom players. India deserves a successful Vodafone Idea. And this is, once again, an idea whose time has come.”
Vodafone Idea Q3 results
Vodafone Idea, on January 27, reported a ₹5,286 crore for the December quarter, compared to ₹6,609 crore in the same period last year”>narrower net loss of ₹5,286 crore for the December quarter, compared to ₹6,609 crore in the same period last year. The company’s revenue from operations increased 2% year-on-year and 1.15% quarter-on-quarter to ₹11,323 crore, also surpassing Bloomberg’s estimate of ₹Rs 11,297 crore.
During the quarter, the company lost 3.8 million subscribers, taking its subscriber base to 192.9 million as of the end of December. Meanwhile, its average revenue per user (Arpu) grew 3% sequentially to ₹172 a month, led by consumer upgrades.
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