New Delhi: Debt-ridden Vodafone Idea, a telecom company, has paid the government 1,700 crore rupees, which covers the outstanding balance for the 5G spectrum as well as other spectrum that was previously purchased.
Early in September, VIL paid up around 10% of its DoT (Department of Telecommunications) obligations for the April-June quarter. According to sources, the telecom has also pledged to pay out the remaining balance by the end of this month.
Vi said in the regulatory filing, “We desire to announce that the Company has today, on September 16, 2023, made the required payment of Rs 1,700 crores (including interest) to the Department of Telecommunications, Government of India, towards 2022 Spectrum Auction Installment.
Prior to this, the telecom company paid off around Rs 450 crore in unpaid license costs and spectrum use fees for the March quarter of 2022–23, a source informed PTI.
In comparison to the present annualized EBITDA of $100 billion (10,000 crore), Idea/Vodafone’s annual instalment is around 160 billion rupees (16,00 crore). According to the research by Deutsche Bank, Bharti’s instalment and annualized EBITDA for its India operations are now at 90 billion rupees (9,000 crore) and 230 billion rupees (23,000 crore), respectively.
The Union Cabinet had authorized a big-bang relief plan for the stressed telecommunications industry in 2021, which included a four-year break for businesses from paying statutory dues, permission to share limited airwaves, a change in the definition of revenue on which levies are paid, and 100% foreign investment through the automatic route.
Vi made the decision to pay the government’s 5G spectrum debt in 20 equal instalments, and the initial payments of Rs 1,680 crores were made in August 2022. VI received the spectrum purchased in the auction in September 2022.
Vodafone Idea owes the DoT close to Rs 700 crore in licensing payments, spectrum usage fees, and other statutory obligations. The study further stated that the telecom business is experiencing financial instability due to significant losses and operating debt of Rs 2.1 lakh billion. Key performance indicators have shown improvement, including a rise in 4G subscribers and an improvement in average revenue per user (ARPU), a profitability indicator.
