As per industry reports, Vodafone Idea’s board is expected to meet on September 4, 2020, to discuss fundraising plans for the telco so that it can pay AGR dues worth Rs 504 billion to the government over the next 10 years and invest in its networks.
As per industry analysts, even to make the payment across the 20 years, that Vodafone Idea had originally requested, the telco would have needed to double its average revenue per user (ARPU) to around Rs 250 by FY23. Now with a 10-year window, the need to increase ARPU has to be complemented with fundraising efforts.
As per recent market estimates, Vodafone Idea has the weakest balance sheet amongst all three private telcos. In the first quarter, it suffered a loss of Rs 254.6 billion due to one-time costs, including AGR provisions. The telco needs to pay around Rs 504 billion more to the Department of Telecommunications (DoT) in licence fee, spectrum usage charges, interest and penalties.