Vi avails grace time for spectrum fees; loss up to ₹7,840 cr
Vodafone Idea Ltd (Vi) will avail of a 30-day grace period for paying its annual instalment of spectrum payment, totalling ₹1,680 crore, along with interest, due on 17 August on account of the acquisition of 5G airwaves last year, the company said on Monday. The company added that one of the promoters will provide ₹2,000 crore financial support if the company requires funds for making the payment, without specifying the promoter entity.
“The company has received a communication from a promoter group entity confirming that in the event of any fund requirement for meeting its impending payment obligations by the company, it shall provide direct or indirect financial support to the extent of ₹2,000 crore," it said in another statement. Meanwhile, Vi’s losses widened from ₹7,296 crore a year earlier to ₹7,840 crore in the June quarter, even as revenues rose from ₹10,410 crore to ₹10,655 crore during the period.
In Q4FY23, the Aditya Birla Group-promoted telco’s losses stood at ₹6,419 crore over revenues of ₹10,532 crore. Average revenue per user, a key metric of profitability, rose to ₹139 in the quarter ended 30 June, up from ₹128 a year ago and ₹135 in the previous quarter.
“The eighth consecutive quarter of growth in average daily revenue, ARPU and 4G subscribers reflects our ability to effectively operate and compete in the market," said Akshaya Moondra, chief executive, Vodafone Idea. “We remain engaged with lenders for further debt fund raising as well as with other parties for equity or equity-linked fund raising, to make required investments for network expansion, including 5G rollout," he added.
“We are in discussion with various network vendors for finalization of the 5G rollout strategy. We have completed device
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