Vodafone Idea (Vi), the country’s third-largest telecom operator, must clear its outstanding dues with Indus Towers to roll out new services. Vi plans to launch 5G soon, leveraging Indus Towers’ infrastructure. Recently, Vi raised funds through equity, improving its ability to settle these debts. According to an ET report, Sunil Bharti Mittal, Chairman of Bharti Enterprises, emphasized that Vi would not receive new services until it pays the overdue amounts, highlighting their significant outstanding dues.
Bharti Airtel, holding a 48% stake, is the largest shareholder in Indus Towers. Airtel insists that Vi settle its old debts before offering new services to customers. Vi’s financial struggles have hindered its ability to pay off these past dues. Previously, Indus Towers even threatened to cut off Vi’s access to mobile towers if payments were not made promptly.
Mittal indicated that Indus Towers’ board might show flexibility regarding payments. If Vi pays a substantial amount upfront and provides a schedule for the remaining balance, it could be acceptable to the tower company.
Despite this, Vi’s management has allocated most of the newly raised funds for capital expenditures, planning to use generated revenues to clear dues. Vi contributes around 40% of Indus Towers’ revenues. During its earnings call, Vi announced plans to launch 5G within six months, necessitating Indus Towers’ support. Recently, Vi has been making routine payments to Indus Towers, but the outstanding past dues still need to be settled.
