Ever since Reliance Jio entered the telecom sector, it has made all top telecom competitors fall behind in the competition. Several telecom companies have made changes in their plans and strategy. Idea-Vodafone, the largest telecom company of the country, is bringing in new strategies to counter its rival Jio.
Idea and Vodafone are planning to go ahead with its plan to invest Rs 20,000 corer on the network within the next 15 months in improving its services, reports as per telecom company officials.
Meanwhile, the company is also trying to raise another Rs 25,000 corer via a rights issue, the promoter shareholders like the Vodafone and Aditya Birla Group have cleared to the board that they are ready to provide around Rs 11,000 corer and Rs 7,250 crore in accordance as a part of the rights issue.
If in case the rights issue is under subscription, then every shareholder promoter reserves the right to subscribe to a specific part or as a whole of the unsubscribed portion.
Vodafone-Idea has given capex worth of Rs 270 billion for the 2019 financial year and 2020 financial year, both together. Meanwhile, only Rs 70 billion has been used out of the total amount during the first nine months. For the next 15 months, we are looking forward at CapEx for deployment of about Rs 200 billion, Akshaya Moondra, the Vodafone Chief Financial officer informed to Analysts during a teleconference.
Moondra also said, Analysts, that, Rs 27,000 corer of CapEx guidance does not consist of capacity which will be formed by reusing the equipment of Vodafone and Idea from their synergy of operations, which is calculated and valued at Rs 6,200 crore.
Upon calling Vodafone and idea over the investment, the company confirmed about the investment plans and said that consolidation of the spectrum is completed over capacity creation on the account and excess capacity creation with the two types namely fresh capex and redeployment equipment.