NEW DELHI: Struggling telco Vodafone Idea added 4.6 million broadband subscribers in August, the highest among all telcos. However, analysts believe this may not be enough to sustain the telco's long-term financial requirements, as per a Mint report.
As the economy reopened, 4G subscribers who did not recharge during the lockdown needed data for consumption. As per an Axis Capital report, the mobile broadband (MBB) market share was up by 42 bps on-month at 17.2% as the conversion of 2G subscribers to 4G picked up the pace.
Telecom analyst Mahesh Uppal told Mint that higher ARPU customers can help Vodafone Idea in improving its revenues vastly. He said that the telco may find it difficult to sustain in the medium-term and requires financial support from either the government or its investors.
ET had reported that the cash-strapped telco is planning to fundraise Rs 25,000 crore in the next 2-3 months.
“We are in discussions with several interested parties to raise funds through the debt and equity routes. The interest levels have been very good and the ongoing discussions are progressing well… we hope to conclude the fund-raise in two to three months at most… we are very optimistic on this score,” managing director Ravinder Takkar had said on a post-earnings call with analysts.
ET had reported that Vodafone Ideaa has reached out to credit funds such as Oak Hill Advisors, Marathon Asset Management, Spectrum Asset Management, Anchorage Capital and Providence Investment Management as well as private equity firms such as Blackstone and asset reconstruction companies for raising the funds that will be used to expand networks and pay adjusted gross revenue dues.
No comments:
Post a Comment