Industrialist Kumar Mangalam Birla is back on the Vodafone-Idea board. Birla has been appointed as an non-independent director on the board of the debt-laden Vodafone Idea or Vi, less than two years after leaving the mobile service provider. Talking about the same, Birla said that he chose to rejoin the board of the group because he sees “hope” in the business. “I think we are seeing hope again in the company,” Birla said after receiving the Lokmat Maharashtrian of the Year 2023 award.
“I thought as a promoter it is only right that I also indicate my willingness to take the business forward which is why the decision to come back on the board (was taken),” he added.
Birla said the government is “pretty resolute” about having three private players in the strategically important telecom sector. Under an equity conversion plan proposed in January 2022, the government became Vodafone-Idea’s single-largest shareholder with a 33.44% stake. In 2021, the government approved a rescue package for debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity.
The move comes at a time when many industry watchers, including analysts, have been speculating about the fate of Vi, which was created with the merger of Vodafone and Aditya Birla Group company Idea ahead of Jio’s launch. The company has been losing market share, and the debt and losses have been mounting.
Vodafone Idea to begin 5G roll out soon
Birla also recently said that the company will begin 5G roll out soon. He, however, did not disclose the timeline and further plans of the same. Vodafone-Idea is so far the only telecom operator in the country that has not rolled out 5G services.
He also acknowledged that its rivals Bharti Airtel and Reliance Jio are “doing well”.
“I thought as a promoter it is only right that I also indicate my willingness to take the business forward which is why the decision to come back on the board (was taken),” he added.
Birla said the government is “pretty resolute” about having three private players in the strategically important telecom sector. Under an equity conversion plan proposed in January 2022, the government became Vodafone-Idea’s single-largest shareholder with a 33.44% stake. In 2021, the government approved a rescue package for debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity.
The move comes at a time when many industry watchers, including analysts, have been speculating about the fate of Vi, which was created with the merger of Vodafone and Aditya Birla Group company Idea ahead of Jio’s launch. The company has been losing market share, and the debt and losses have been mounting.
Vodafone Idea to begin 5G roll out soon
Birla also recently said that the company will begin 5G roll out soon. He, however, did not disclose the timeline and further plans of the same. Vodafone-Idea is so far the only telecom operator in the country that has not rolled out 5G services.
He also acknowledged that its rivals Bharti Airtel and Reliance Jio are “doing well”.
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsUpdate is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
