Investors unwilling to invest in telco until industry health improves: Vodafone Idea to DoT

NEW DELHI: Vodafone Idea has said that investors are not willing to put in money into the cash-strapped telco unless tariffs rise and the health of the industry improves. It added that it needs another year to pay its Rs8,292 crore dues related to spectrum purchased in auctions as it is not generating adequate cash from operations and adjusted gross revenue (AGR) payments are taking away liquidity.

In a letter to the Department of Telecommunications (DoT) dated June 25, the mobile phone company said that due to the adjusted gross revenue (AGR) upfront payment of Rs7854 crore and the upcoming payment of the first instalment of AGR scheduled for March 2022, it won’t be able to pay its spectrum dues which needs to be paid on April 9, 2022.