InvestorQ : What exactly went wrong with Vodafone Idea that it dipped into such big losses?
indhumathi Sayani made post

What exactly went wrong with Vodafone Idea that it dipped into such big losses?

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5 months ago
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For the Mar-21 quarter, Vodafone reported net losses of Rs.7,023 crore. The company has warned that it may not sustain as a going concern if this trend continues. What went wrong for Vodafone? Problems for Vodafone started in 2016 when Jio was launched. Intense price and service stress meant Vodafone had to merge to survive. Unfortunately, when Idea and Vodafone merged, the stress doubled instead of reducing.

The last straw was the Rs.83,000 crore AGR and spectrum usage bill. This is a legitimate cost that telcos have to pay but at this stage, it just made survival tough for Vodafone Idea. In a way, the Supreme Court order brought the risk came back to roost for VI.

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