ABG Counting on Government for Vodafone Idea’s Future
The ABG is counting on the Indian government for the future of the Vodafone Idea. The group’s executives blame that the industry doesn’t have a ‘level playing field’ and said that the company’s fate is now in the hands of the government. A top official from the group said that ‘herculean efforts’ have been made to bring the company on track to success; thus, filing for a voluntary bankruptcy just won’t make any sense. Further, since it is not a management error, a voluntary bankruptcy won’t even be fair in the first place. Ravinder Takkar, Managing Director of Vodafone Idea, had assured on Thursday that Kumar Mangalam Birla would continue to support the telco even after stepping down as the non-executive chairman. There’s one thing absolutely clear; Vi needs the help of the government in the form of a relief package. In addition to that, the telco should get very aggressive with its network services. This will help it in adding more subscribers in the short and medium-term. It is highly unlikely that Vodafone Idea will get any investor or funding any time soon. The telco desperately needs the help of the government since its promoters are unwilling to put any cash in the company.
