Vodafone Idea has completed the demerger of its fibre infrastructure by transferring the assets to a wholly owned unit, Vodafone Towers Ltd (VTL), the Economic Times reports. The business daily – which cites a regulatory filing – says that the demerger paperwork was filed with the Registrar of Companies on 15 October and became effective that day.
The report notes that the move paves the way for the telco to monetise its fibre assets, which are valued at around USD450 million. Interestingly, Vodafone Idea is the third Indian operator to pursue a demerger strategy this year, following in the footsteps of chief rivals Reliance Jio Infocomm (Jio) and Bharti Airtel.
In March 2019 the National Company Law Tribunal (NCLT) gave permission for Jio to hive off its fibre and tower businesses into separate units, and in July the watchdog approved Bharti Airtel’s scheme to transfer its optical fibre cable (OFC) business into a separate subsidiary named Telesonic Networks Ltd.