Discussion Govt of India now holds 48.99% stake in Vi (Vodafone Idea)

[vikhyath]

In a worst case scenario, the payment tenure could be as long as 50-100 years, said a second official.

Vodafone Idea stares at dark future even as govt weighs relief

The Indian government is grappling with Vodafone Idea's (Vi) financial woes, debating relief measures amid concerns about its long-term viability. Even extending payment tenures for adjusted gross revenue (AGR) dues may not suffice, potentially leaving Vi unable to meet liabilities beyond 2028-29.

economictimes.indiatimes.com

50-100 years

The promoters have been unwilling to invest in Vi over the years, as they don't see any meaningful return on investment.

The government is stuck.. It supported Vi just enough to prevent a collapse at the time, but now holds a large equity stake with no control, no financial return, and no clear exit path.

The true motive behind Vi's 5G launch is largely a PR exercise, aimed at signaling to banks, the government, and markets that the company is still alive and shouldn’t be written off.

 

[saketk11]

So technically, Vi would become a PSU! If this happens, the only viable option might be to merge MTNL and Vi, since both are listed companies, unlike BSNL. This would automatically make MTNL a pan-India network. Yet another white elephant might be born, but perhaps that's still better than a duopoly.

I would certainly see this as option,

Because MTNL holds so much land other assets which they cant monitize.

By merging vi and mtnl, atleast "Proud Promoter" and Mr moondra and dispose off those assets and bring some balance (equity) in real BALANCE sheet.

This way Vi can roll out 5G with indian gear supplier like tejas or manevir and compete in market with focus on top 100/200 cities

 

[vikhyath]

I would certainly see this as option,

Because MTNL holds so much land other assets which they cant monitize.

By merging vi and mtnl, atleast "Proud Promoter" and Mr moondra and dispose off those assets and bring some balance (equity) in real BALANCE sheet.

This way Vi can roll out 5G with indian gear supplier like tejas or manevir and compete in market with focus on top 100/200 cities

MTNL’s prime-location assets could generate some capital.. not enough to clear debts, but enough to keep a merged entity running in the short term without constantly chasing banks for funds.

While it won’t solve everything, it could buy time, especially if MTNL and Vi are merged (Either as a PSU or a Private entity).. to sort out legal hurdles and stabilize operations. Individually, both are likely to fail anyway, so there’s little downside in trying.

If the merged entity survives, the government could look for an investor and exit. If not, with legal issues resolved and BSNL expected to stabilize by then (Say FY29), absorption into BSNL could happen smoothly.

Because in the end, it’s smarter to deal with one headache at a time than juggle multiple failing entities with no clear direction.

 

[Athreya B N]

They should definitely merge Vi+MTNL+BSNL and stop the duopoly of top players. Affordable plans and decent service market will become ease and dependency of duopoly will reduce gradually

 

[TheAndroidFreak]

They should definitely merge Vi+MTNL+BSNL and stop the duopoly of top players. Affordable plans and decent service market will become ease and dependency of duopoly will reduce gradually

That time has gone now. Probably they can just do intra-circle agreements and use each other's networks. BSNL should give band 8/41 spectrum to Vi and keep giving cheap plans to customers.

Affordable price and decent service will never go hand in hand in India or any part of country. By 2028, every corner of the country should be covered by 700Mhz/900Mhz LTE and Band 1+3 on 4*4MIMO Vi-Airtel to start launch of SA 5G. By 2030, there will be strong competition to Jio and ARPU will be around 499. Postpaid plans will be around 999.

But most importantly, India need affordable 1Gbps plans at 1999 across cities.