Can Vodafone Idea raise the required funds and work out a recovery for itself now?

With the government announcing a rather liberal Telecom Relief Package, Vodafone Idea is fairly confident of raising the requisite capital to cushion the balance sheet. Even the two promoters viz. Aditya Birla group and Vodafone UK are now open to bringing in more capital. It may be recollected that the relief package has given a 4-year moratorium on AGR and SUC dues, subject to interest charges.

Of course, the primary consideration is that the Indian telecom industry does not become a duopoly for now. India is the world’s second largest wireless and mobile market after China and no player wants to lose the access to this market. Also, the growth of digital transactions are growing at a geometric pace and telecom and wireless companies are at the core of this shift. Of course, raising funds is the first big challenge.