VI Seeks 30-day Extension to Pay ₹1,680 Cr Spectrum Installment Amid Financial Crunch

New Delhi: Vodafone Idea, burdened by debt, has requested a 30-day extension to pay the spectrum auction installment of Rs. 1,680 crore that is due on August 17. The company plans to utilize the grace period in accordance with the terms of the Notice Inviting Applications (NIA) and pay the amount with interest.

Despite assurance of financial support from a promoter, Vodafone Idea is pursuing additional funding options to meet its impending payment obligations. The company is in talks with investors and banks and is optimistic about concluding these discussions in the upcoming quarter.

Vodafone Idea’s consolidated net loss for Q1 2023 increased to Rs. 7,840 crore, while consolidated revenue from operations rose marginally to Rs. 10,655.5 crore. The company’s total gross debt as of June 30, 2023, stood at Rs. 2,11,760 crore.

To counter declining customer numbers, Vodafone Idea plans to expand its 4G coverage and invest in 5G technology. The company is also actively addressing vendor payment accumulation and expects to begin resolving this in the next quarter.

The Average Revenue Per User (ARPU) for Vodafone Idea increased to Rs. 139 in the June quarter from Rs. 128 the previous year. The company aims to rationalize tariff plans to better suit different usage levels, with plans to increase ARPU for higher data consumption.