Amazon and Verizon are in talks with Vodafone Idea to help the struggling telecom company in India. Both are looking forward to buying a stake in Vodafone Idea worth $4 Billion. The news itself raised the stock prices of the company.
Earlier, two days back, Supreme Court had given a verdict for paying off the AGR dues within 10 years. Also, the Cash-striped Vodafone Group has already told they will not invest any further until there is relaxation by the Government. The company has paid the Indian government 78.5 billion rupees ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly 500 billion rupees ($6.8 billion) more.
Currently, Vodafone and Idea both have been losing customers due to the aggressive pricing and expansion by Jio. Airtel too has lost subscribers to Jio but has managed to be in the second place, after Jio. Consumers are fearing a duopoly of Jio and Airtel in India will again raise the price of internet packs.
The new investment news from Amazon and Verizon has raised the hopes of Vodafone Idea again. 5G in India hasn’t been launched yet. Jio is positive about launching its first and has enough cash and investment to do so.
While both Airtel and Vodafone Jio have not shown much interest in 5G deployment, the new investment will also give a major boost. Considering Verizon is the largest telecom operator of the US, it may help with the 5G tech and other infrastructure to revive the company.
Jet Airways May Fly Again Soon; Two Lenders Bid For The Revival
Amazon Pay gets ₹ 700 Crore funding from its parent entity
Amazon sends legal notice to Future Group over Reliance Retail deal
Amazon Launches A ‘Personal Shopper’ Service For Men’s Fashion
Walmart to invest $25 billion in Tata Group's 'super app'
© 2020 CIO Bulletin. All rights reserved.