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Telecom towers giant Indus Towers has reportedly asked Vodafone Idea to clear all its existing dues and make timely payments to continue carrying on business post-November.
For the unversed, Indus Towers is India's largest mobile tower installation company which offers passive infrastructure services to telecom operators and other wireless services providers. The company is reported to have over 1.8 lakh towers with a nationwide presence in all 22 telecom circles.
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This poses a serious threat to the cash-strapped teleco which has been losing subscribers on a monthly basis. Anonymous sources have suggested that this drastic measure came after independent directors expressed their concerns over Vodafone's rising debt.
"Indus Towers has asked VIL to clear past dues at the earliest. The company has asked VIL to clear 80% of the current month's dues and make the entire payment on time from next month onwards. Post-November Indus Towers will stop access to Vodafone Idea in case of non-payment," an anonymous source told the Press Trust of India.
Moreover, a different source has suggested that American Tower Corporation (ATC), another Telecom tower behemoth that manages around 75,000 towers in India, is also planning to undertake similar measures against Vodafone Idea, a measure which could cripple the already weakened teleco. Vodafone reportedly owes Rs 6,800 crores and Rs 2,400 crores to Indus Towers and ATC respectively.
Vodafone Idea has proposed a payment plan to Indus Towers within which they stated their ability to pay a part of the dues till December 2022 and 100% thereafter along with the clearance of the old dues that would accumulate till December 2022 in a phased manner between January 2023 and July 2023. The management of Indus Towers has stated that they are negotiating a better payment plan with Vodafone.
None of the parties mentioned above have commented on the matter.
Vodafone Idea is already lagging behind Jio and Airtel. The distressed teleco has been working towards the launch of its 5G services as it recently partnered with OnePlus India to make 5G accessible to smartphone users in India. India is all set to get 5G services in the upcoming weeks as Vodafone must resolve its troubles soon to remain competent.
The stock of Vodafone Idea closed at Rs 8.50 per share, down 5.56%.
Article by Aman Agarwal.
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