Vodafone global CEO Nick Read has sought a meeting with Telecom Minister Ravi Shankar Prasad in view of the company’s precarious position in the country. Read is reportedly expected to visit India later this week. According to Mint, the meeting has not been confirmed by the minister.
BusinessLine reported that Read will be visiting India on March 6, and has requested the meeting along with Vodafone Idea Limited Managing Director Ravinder Takkar.
Vodafone Idea has the highest AGR dues, estimated by the Department of Telecommunications to be Rs 53,038.6 crore, a large chunk of which is interest and penalties.
Last week, BloombergQuint reported that the telco had written to the government, asking for a 15-year tenure to pay off their dues at a lower interest rate of 6%. It also reportedly asked for a floor price to be set from next month, which would help the sector pay off AGR dues and increase revenues.
VIL also reportedly proposed a tariff hike, including fixed connectivity charges of Rs 50 per plan for 28 days, a price of 6p/min for calls that land on other networks, and data to be priced at Rs 35 per GB.
During Vodafone’s Q3 earnings call for FY20, Read had said that the condition of Vodafone in India continues to be critical, and asked the government to take action so that the telecom industry in India doesn’t become a duopoly. “Specifically, we have requested an immediate two-year moratorium on spectrum payments, a lowering of license fees and taxes, the waiving of interest and penalties on the AGR case and the ability to make the payment on the principal over 10 years with a two-year moratorium,” Read said.
In Q2, when Vodafone Idea announced the biggest ever loss in India’s corporate history, it had said that their “ability to continue as a going concern is dependent on obtaining the reliefs from the government”. However, there is no relief in sight so far.
Vodafone Idea so far has paid Rs 3,500 crore as part of its dues. There are wide disparities between the dues calculated by the companies themselves and the DoT, and Bharti Airtel has paid the government dues as per its calculations. IANS had earlier reported that the government will ask Vodafone Idea this week to apprise them of their numbers and submit the dues simultaneously.
The Economic Times reported that Vodafone paid Rs 3,042.80 crore as payment for deferred spectrum dues. Its AGR dues are pending.