Union IT and Communications Minister Ashwini Vaishnaw assured in an interview that the government is fully supportive of Vodafone Idea’s efforts to raise funds, including through equity and debt, with contributions from its promoters. Vaishnaw emphasized that the government has been proactive in assisting the struggling telecom company thus far.
“We are committed to supporting any fundraising initiatives that Vodafone Idea wishes to pursue. As a listed entity, I refrain from speculating on its future. What’s important is that the government has made every effort to extend support,” stated Vaishnaw.
Recent reports revealed that Vi has secured commitments from anchor investors exceeding $1 billion (approximately ₹8,200 crore). The telecom operator has scheduled an extraordinary general meeting (EGM) on April 2 to seek shareholder approval for its ₹20,000 crore equity fundraising plan.
Following the necessary approvals, Vodafone Idea anticipates concluding the equity fundraising in the upcoming quarter, with participation from its promoters.
During its January 30 earnings call, Vodafone Idea outlined plans to roll out 5G services within six to seven months after securing necessary funding. The company has already met its 5G rollout obligations in key circles and aims to fulfill requirements in additional circles in the coming months. Vaishnaw reiterated that telecom operators are likely to approach the upcoming spectrum auction cautiously, primarily focusing on renewing expiring spectrum in certain circles.
India’s next spectrum auction is scheduled to commence on May 20, as per the notice inviting applications (NIA) document released by the Department of Telecommunications on March 8. Vaishnaw anticipates demand primarily from companies seeking to renew spectrum and address coverage gaps.
Additionally, spectrum currently tied up in insolvency proceedings and set to expire in 2024 will also be available for auction.
The minister highlighted that increased spectrum availability will enhance service quality for telecom consumers. The auction will include spectrum across various bands, with revised reserve prices based on TRAI recommendations.
As outlined in the NIA document, spectrum winners will have ten days to settle payment upon receiving the demand note, with options for installment plans at 8.65 percent interest. The spectrum awarded will be valid for 20 years, with no spectrum usage charges (SUC) during this period.
After one year from the frequency assignment date, telecom providers can share, trade, and lease the acquired spectrum among themselves, with surrender options available.
In the previous spectrum auction held in 2022, Reliance Jio, Bharti Airtel, and Vodafone Idea were the primary bidders, with significant investments in 5G spectrum.
