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Vodafone sticking with India unit despite fees ruling

1 Nov 2019

UK-based Vodafone Group says it has no plans to exit its Indian venture Vodafone Idea despite news that the unit could be liable to pay as much as INR400 billion (USD5.6 billion) in outstanding fees and penalties. The New Indian Express says the operator has denied rumours that it could sell up in India, with the firm saying: ‘We would like to categorically state that this is not true and is malicious. Vodafone is actively engaging with government and we are fully supportive of our local management as they continue to manage our joint venture in these challenging times.’

As reported by CommsUpdate earlier this week, the country’s Supreme Court supported the definition of Adjusted Gross Revenue (AGR) which is used by the Department of Telecommunications (DoT) to calculate frequency usage and licence fees. Operators had used a definition based solely on core sales when reporting their AGR, while the DoT insisted that all revenue should be incorporated. Reports suggest that telcos are liable to pay more than INR920 billion between them.

India, Vi (Vodafone Idea Limited, VIL)

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