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Vodafone says reports of its exit from Indian telecom space are baseless

Vodafone Group has issued a statement clarifying that it is not shutting down its India operations. It called the rumours as baseless.

Vodafone Group says it is not exiting from Indian telecom space.

The UK-based Vodafone Group has issued a statement quashing the rumours of its exit from the Indian telecom space. It was reported that Vodafone may shut down its India operations owing to mounting losses, however, Vodafone has called it a baseless rumour.

“Vodafone is aware of the unfounded and baseless rumours circulating in some of the Indian media that we have decided to exit the market. We would like to categorically state that this is not true and is malicious,” Vodafone Group said in a statement.

“Vodafone is actively engaging with the government and we are fully supportive of our local management as they continue to manage our joint venture in these challenging times,” it added.

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Earlier news agency IANS had reported that Vodafone is ready to “pack up and leave any day now.” Vodafone-Idea, the merged entity of Vodafone India and Idea Cellular, had said that it was not in a position to comment on media reports of Vodafone Group shutting down its India operations.

The report cited the reason for Vodafone’s exit to be the mounting operational losses and declining market capitalisation along that is adversely affecting the balance sheet of Vodafone-Idea.

In March 2017, Vodafone India and Idea Cellular announced their merger, however, things aren’t going well for the combined entity with shrinking revenue and gross debt of Rs 1.2 trillion as of June this year.

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The telecom operator is also losing subscriber base every month. Despite witnessing higher data consumption on its network and signing up more 4G subscribers, the network has posted a loss of Rs 4,873.9 crores in the June quarter. The financial stress on Vodafone-Idea may worsen as the company has been ordered by the Supreme Court’s AGR judgement to pay around Rs 28,309 crores.

First published on: 01-11-2019 at 12:07:33 pm
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