Vodafone Idea, the third-largest telecom operator in the country, is working on a new business strategy. The new strategy will be finalised once the government comes out with the exact guidelines. The decision to go for a new business strategy was taken after the relief package for the sector was announced. The telco is also working with the other stakeholders for funding requirements. Himanshu Kapania, Non-Executive Chairman of Vodafone Idea (Vi), told ET Telecom that once the exact guidelines are released from the government, the management will complete its new business plan and then will come back to the board for the exact financial requirement of the company. Kapania confirmed that Vodafone Idea is also talking with the other stakeholders, and once the company has received a confirmation from the board, it will go to the stakeholders with its funding requirements.
Kapania Says Relief Package Shows Government’s Intent
Kapania told the publication that the government’s intent of keeping the environment a three market player is clear from the relief package. The non-exec chairman of the company further said that this relief package will provide short-term relief to Vi and will also influence the sector in a big way. Vodafone Idea got the short-term relief it needed from the government. Now all that Vi needs is tariff hikes. With tariff hikes, the telco will be all set for a graceful future. All of its cash flow issues will be resolved since there will be no debt to pay off, and the revenues will also increase. The relief package will certainly contribute to the company’s growth and also bring ‘ease of business’ to the sector. Even the 5G rollout in India will be positively impacted because of this. The telcos will now have more money to invest in the networks and purchase spectrum in the auctions. With 5G, their enterprise revenues are surely going to grow.
