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Towercos asking for USD6.3m in exit fees from Vodafone Idea

16 Jan 2019

Mobile tower firms Bharti Infratel and Indus Towers have demanded a combined total of INR45 billion (USD6.3 million) from Vodafone Idea in exit fees for vacating tower tenancies ahead of their contracts’ expiry, the Economic Times writes. Vodafone Idea is vacating the surplus tenancies following the merger of Idea Cellular and Vodafone India. The paper quotes a person familiar with the matter as saying that Vodafone Idea is disputing the claim on the basis that it is not exiting the tenancies, but ‘converting two tenancies into a single tenancy with higher loading on the same sites’. The merged entity had previously set aside INR10 billion for potential exit penalties related to consolidating its tower footprint. None of the parties commented on the issue, with the cellco saying that it was a matter between the carrier and its business partners.

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