Union Telecom Minister Jyotiraditya Scindia has said that India cannot afford a duopoly in the telecom sector, amid reports that the government is examining a relief package for Vodafone Idea (Vi).
According to a PTI report, while speaking at the World Wi-Fi Day Summit organised by the Broadband India Forum, Jyotiraditya Scindia said that a duopoly would not support India’s digital ambitions. His statement is being seen as a signal of government intent to support Vodafone Idea and prevent further erosion of competition in the telecom sector.
Vodafone Idea owes Rs 83,400 crore in adjusted gross revenue dues to the government. The telecom major had sought waivers on over Rs 45,000 crore in interest, penalty, and interest on penalty. However, the Supreme Court had recently dismissed its plea, adding pressure to the company’s financial position.
For the fiscal fourth quarter, Vodafone Idea delivered in-line performance, with slight improvements in key metrics such as ARPU and a moderation in subscriber losses. Earlier on May 31, the company had released its Q4 results with net loss widened to Rs 7,166.1 crore, marking a marginal improvement from Rs 7,674.6 crore recorded in the same period last year. However, when compared to the December quarter, losses widened from Rs 6,609.3 crore recorded during Q3FY25. For FY25, Vi narrowed its losses to Rs 27,383.4 crore, down from Rs 31,238.4 crore in FY24.
Furthermore, in reference to media reports that stated that the government is considering relief on Rs 84,000 crore dues to Vodafone Idea, the telecom company on Tuesday, informed the exchanges, “We have not received any communication from the Government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful.”