NEW DELHI: Vodafone Idea (VIL) is in talks with the government for finding a solution on the issue of adjusted gross revenue (AGR) after the Supreme Court rejected its curative petition on the same.
Vodafone Idea CEO Akshaya Moondra, during the Q2 investor call, expressed hope of finding a solution. In September 2024, the Supreme Court rejected 19 petitions filed by 19 telecom service providers, including Bharti Airtel and Vodafone Idea, to recalculate AGR dues.
“The government remains supportive of three private players in markets, and we are engaged with them in finding a solution,” said Moondra.
Additionally, Vodafone Idea plans to launch its 5G network in the fourth quarter of this fiscal year. The telco is also in talks with lenders for debt funding and network expansion. The company is optimistic about securing debt funding from its lenders once the government provides clarity on the AGR issue.
“I am personally involved in these discussions, along with the promoters, following equity funding via FPO and preferential issuance to one promoter group,” said Moondra.
Moondra also advocated for further tariff hikes to improve the telecom industry in the country. Regarding the impact of the recent tariff hikes, Moondra stated that Vodafone Idea had lost 5.1 million subscribers, many of whom have ported to the state-owned Bharat Sanchar Nigam Limited (BSNL).
“Porting out to an operator that has not raised tariffs has increased. We have also seen a slight dip in our 4G subscribers. We have mobile number portability data till October 2024. Post-August, the operator (referring to BSNL) is declining,” said Moondra.
Meanwhile the debt-ridden telco on Wednesday reported a consolidated loss of Rs 7,175.9 crore in the September quarter as against a loss of Rs 8,746.6 crore in the same period a year ago.