Vodafone Idea could suffer additional harm due to a shortage of funds to implement 5G technology, resulting in the company being unable to provide 5G services.
New Delhi, India – The ongoing struggles of Vodafone Idea, one of India’s largest telecom operators, continue as the company faces the possibility of falling even further behind its competitors due to a lack of funds to implement 5G technology.
While other telecom operators in India have already started rolling out 5G services in select cities, Vodafone Idea has been unable to do so due to financial constraints. The company’s massive debt of over Rs 1.9 lakh crore ($25 billion) has left it with limited options for raising funds, and with the ongoing COVID-19 pandemic further impacting its financials, the situation has only worsened.
The lack of 5G services is a significant concern for Vodafone Idea as it risks falling behind its competitors in the race to capture a share of the lucrative Indian telecom market. The company has already been struggling to keep up with rivals Reliance Jio and Bharti Airtel, who have been investing heavily in 5G technology.
Industry experts warn that Vodafone Idea’s inability to offer 5G services could further hurt its financials and customer base. “The 5G technology is the future of the telecom industry, and companies that are unable to adopt it risk losing their relevance in the market,” said Rajiv Sharma, a telecom analyst at SBICAP Securities.
Vodafone Idea’s troubles have been compounded by the recent court ruling that requires it to pay over Rs 58,000 crore ($7.8 billion) in adjusted gross revenue (AGR) dues to the government. The company has already paid over Rs 7,800 crore ($1.04 billion) of dues, but it still has a long way to go.
To raise funds, Vodafone Idea has been exploring various options, including selling its stake in Indus Towers and seeking relief from the government on the AGR dues. However, with the company’s financials already under stress, analysts remain skeptical about the effectiveness of these measures.
In the meantime, customers of Vodafone Idea have expressed concern about the company’s ability to continue providing uninterrupted services. Some have even started exploring other options, including switching to rival operators.
Vodafone Idea has not yet commented on the lack of 5G services and its impact on the company’s financials. However, with the telecom industry rapidly moving towards 5G technology, it is clear that the company needs to act fast to avoid falling further behind its competitors.c