India's third largest telecom operator Vodafone Idea may receive Rs 2,000 crore from its UK promoter Vodafone Group Plc. However, Vodafone UK had earlier claimed that it would no longer involve itself in this Indian telecom business unit. However, they are expected to change their mind soon.
According to a report by ET, Vodafone UK is the next to help fund Vodafone Idea. Besides, they have proposed to sell some shares of Vodafone Idea. Vodafone UK is also in talks with Airtel to sell stake in the company. However, due to policy differences between the two organizations, the agreement could not be implemented.
The report also said that Vodafone Idea will use this money to pay off the Indus Tower arrears. Incidentally, earlier Vodafone Idea paid about Rs 10,000 crore to Indus, and the current Rs 2,000 crore received from the Vodafone Group can also be used to settle past dues. It may be noted that Vodafone Idea is currently looking for a lender to get a loan of Rs 25,000 crore.
However, Vodafone Idea can pay Indus Tower from the proceeds through equity. However, with this money Vodafone Idea wants to further improve their network coverage and network capacity. That is why they have purchased spectrum in the 900 MHz band for various circles to improve domestic coverage. Needless to say, this move by Vodafone will definitely help improve their network, but it remains to be seen when Vodafone Idea will launch 5G and what its coverage will be like.
