Mobile Recharge To Become Costlier? Vodafone Idea CEO Akshaya Moondra Calls for Another Round of Tariff Hikes, Here’s Why
Vodafone Idea CEO Akshaya Moondra has announced that the telecom industry would need another round of tariff hike to improve cash flow generation amid AGR dues. The Vi CEO said he started new conversation with the government after Supreme Court rejected the petition filed by 19 telecom companies including Vodafone Idea.
Mumbai, September 23: Vodafone Idea CEO Akshaya Moondra recently shared the telecom company's plans to generate cash flow amid the dues of AGR. He revealed that Vi was in conversation with the Centre on Adjusted Gross Revenues dues. This comes as the Supreme Court of India rejected 19 petitions filed by 19 telecom operators, including Vodafone Idea and Bharti Airtel over the re-calculation of AGR dues.
Moneycontrol reported that Vodafone Idea CEO said the telecommunication industry would need to announce another tariff hike to improve their cash flow generation ability. The TSPs expected the debt funding to conclude in the upcoming seven to eight weeks. Vi CEO said he began a "fresh" conversation with the Indian government on possible remedies. Vodafone Idea Shares Jump 14% After Telecom Firm Signs USD 3.6 Billion Deal With Nokia, Erricson and Samsung.
Akshaya Moondra unveiled this during an investors' call a few days after SC rejected the petitions from telecom companies. He said that the final outcome would be decided by the court for the AGR dues. Despite the curative petition's negative result, telecommunication firms' long-term business plans with existing liabilities and strategies would be unaffected.
The SC ruling is reportedly considered a major setback for the TSPs, especially for those like Vi, who have thousands of crore in debt-free to the government. Vi CEO Akshaya Moondra said the new conversation would likely be more engaging as the company pushed further remedies with the government. Vodafone Idea Finalises USD 3.6 Billion Deal With Nokia, Ericsson and Samsung for Supply of Network Equipment Over a Period of 3 Years To Strengthen Its Footprint in India.
Vodafone Idea Chairman Ravindra Takkar said before the rejection of petitions by the Supreme Court, the company had been in conversation with senior government officials. It said there were many possibilities and options to come out. Ravindra also added that the ongoing conversation intended to find a way that would work for everyone in the telecom industry.
(The above story first appeared on LatestLY on Sep 23, 2024 04:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).