It was brought to light recently that India’s top telco – Vodafone Idea’s inability to raise funds will likely damage its ability to pay for infrastructure services while adversely impacting Indus Towers’ overall finances. The poor condition of the telecom sector has stopped Vodafone Idea from raising Rs. 25,000 crore through debt and equity.
Indus Towers’ largest customers, Vi and Bharti Airtel are raising or have raised substantial amounts to strengthen their balance sheets since its business and growth prospects depend on demand from these service providers. Any deterioration in their financial health due to increased competition or inability to raise further funds can affect their ability to pay for infrastructure services, which could drastically impact Indus’ revenues, cash flows and overall financial condition.
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership company. It is India’s leading telecom service provider. The company provides PAN India Voice and Data services across 2G, 3G and 4G platform. With the large spectrum portfolio to support the growing demand for data and voice, the company is committed to offering delightful customer experiences and contributing towards creating a truly ‘Digital India’ experience by enabling millions of citizens to connect and build a better tomorrow.
Indus Towers Limited is formed by the merger of Bharti Infratel Limited and Indus Towers. This combined strength makes Indus as one of the largest telecom tower companies in the world. Enabling communication for millions of people daily, Indus aims to provide affordable, high-quality and reliable services for the growing network connectivity needs of India. Moreover, the company is committed to truly living its credo of Putting India First and Connecting Lives Across the Nation.