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Vodafone Idea says no need for plan B in case funding falls through

A telecom tower

Low data tariffs, floor pricing, and the need for an extended moratorium on AGR dues were also discussed. In its earnings call for the fourth quarter of FY2020–21, Vodafone Idea (Vi) said that it was fairly confident about capital infusion from fresh investments coming in, and that a plan B wouldn't be needed in case that doesn't happen. Vi CEO Ravinder Takkar said, "We are engaged with investors, and we expect growth to take place. I don’t think there’s any need to come up with a plan B. We’re not at that point, and I think we won’t reach to that point. We’re confident funding will take place in the coming weeks." The company's balance sheet is currently strapped for cash and the operator is in need of capital infusion to survive. On errors in AGR calculation: Vi had approached the Supreme Court due to alleged errors by the Department of Telecommunications in how the Adjusted Gross Revenue dues owed by the operator were calculated. "We have confidence that the Supreme Court will allow the DoT to make adjustments based on errors and omissions," Takkar said. "This is an important development we’re looking for, but this isn’t a very big hurdle in the minds of investors who are engaging with us on fundraising." Biggest hurdle is pricing: Vi repeatedly cast the main issue plaguing the telco (and the industry at large) as the low tariffs for data. "The biggest hurdle stems from the overall industry stress because of the pricing situation.…

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