New Delhi: Vodafone-Idea chairman Kumar Mangalam Birla attended a program on December 6. He expressed concern at answering a question asked about the future of the company. Birla said “If we we are not getting anything then I think it is end of story for Vodafone Idea.” Saying so, he hinted that he would no longer invest in Vodafone-Idea. Now if the government does not get help, the company will go bankrupt.
Other companies are also facing a reduction in tariffs after Reliance Jio’s arrival. After the SC decision in the adjusted gross revenue (AGR) dispute, the difficulties of telecom companies have increased. Vodafone-Idea lost Rs 50,921 crore in July-September. This is the highest loss in any quarter of any Indian company. Vodafone – Idea has also decided to raise tariffs in the last few days, but there is not enough hope or need to calculate the benefits.
Continuous decline in shares following Birla’s statement, shares on the BSE fell 8.89% to Rs 6.66. Brickwork ratings fell 5% Thursday due to downloads. Mr Birla was however hopeful of a relief from the government not just for the telecom sector but the industry as a whole to pull out the economy from a more than six-year low GDP growth of 4.5 per cent.