voda idea demands easy payment terms from tower vendors

People familiar with the development said Vodafone Idea has sought additional time from Indus Towers and softer payment terms, including partial payment of its outstanding dues.

Vodafone Idea told stock exchanges on Friday that the number 3 carrier was in talks with the country’s largest tower provider, with the latter looking to cancel services for non-payment of its dues.

“The company is in discussion with Sindhu for soft payment terms, which are ongoing, but not yet concluded. We would like to clarify that if any event occurs which requires disclosure under SEBI Listing Regulations, the company shall inform the stock exchanges about the same,” said the promoted company of Aditya Birla Group.

A senior executive aware of the developments said the carrier has sought more time to pay and the flexibility to pay for parts as well as in-room to negotiate lower energy costs in addition to fares.

Another executive said, “Indus has recently renegotiated its master services agreement with telcos, so Vodafone Idea may have got better terms, but they would have sought more time.”

Another senior official said the tower service providers are sitting on arrears for several months and disconnecting the towers in case of non-payment of dues would be detrimental to Vodafone Idea which was continuing to generate revenue from its operations.

“They can also ask to surrender a large number of inactive sites without any exit charges,” the executive said on condition of anonymity.

Vodafone Idea’s queries remained unanswered till Friday evening.

According to an Economic Times report, the discussion comes at a time when loss-making carriers have been asked to pay 80% of their current month’s dues and their entire dues on a monthly basis, failing which till the towers. Access will be restricted. report good. Carrier’s dues to Indus and American Tower Corp increased 10,000 crores.

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Indus reports 66% fall in net profit 477 crore for the quarter ended June 2022, which was 73.6% lower than the previous quarter. The company did not name Vodafone Idea, saying the fall was due to the company’s receivables from one of its key customers.

Carrier hasn’t finished growing more than its funds yet 20,000 crore which it needs to remain competitive in the Indian market, where rivals such as Bharti Airtel and Reliance Jio have aggressive plans to launch 5G services. The top two carriers have already signed up vendors for telecom gear to be used for deployment of 5G networks, but Vodafone Idea is yet to finalize contracts.

Vodafone Idea CEO Akshay Moondra said, “We are in discussions with various vendors and also arranging funding with banks for the purchase of 5G (gear). After both these things are done, we Will take action to deploy 5G.” Last month at the 27th Annual General Meeting of Carrier.

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