Vodafone Idea Debt: Vodafone Idea on the verge of closure, what will happen to 23 crore customers? vodafone idea could close operation what will happen to 23 crore customers
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According to the report, this will leave only two companies Reliance Jio and Bharti Airtel in the market. For this reason, there is concern about the monopoly position of the two companies in the long term. According to the brokerage company, telecom companies are likely to increase tariff in June, 2024 only after the general elections. The reason for this is retail inflation being above the tolerable range of RBI and elections in the states. According to the report, ‘The delay in increasing the tariff rates will adversely affect Vodafone Idea and its survival in the market will be difficult. This will create a monopoly situation between the two companies. It states that Vodafone Idea needs to increase investment to expand 4G coverage and launch 5G services.
Why did such a thing happen
The report cautioned that if the company does not invest, its market share will continue to decline. According to the report, “As per our estimate, Vodafone Idea may face a cash shortfall of Rs 5,500 crore over the next 12 months and may even have to shut down operations due to no rate hike or delay in raising capital.” The brokerage company has also suspended the rating of Vodafone Idea. He has made it clear that raising funds is a difficult task for the company given the debt of more than Rs 2.3 lakh crore and the possibility of loss in market share. The company’s share price fell to Rs 6 during Monday’s trade, which is its 52-week low.
what will happen to the customers
According to the data of December 31, 2022, Vodafone Idea has about 23 crore customers in the country. It is the third largest telecom company in the country and the 11th largest in the world by customer base. The question is what will happen to the customers if the company closes. Customers need not worry. In case the company ceases to operate, sufficient time will be given to port the customers to other telecom companies. As per the rules, telecom companies have to give at least 30 days advance notice to customers before discontinuing their operations in India. In this regard, Telecom Regulator TRAI (TRAI) has to give notice 60 days in advance.
Opinion: Vodafone Idea should not become a noose around the government’s neck! Exit plan will have to be prepared
If a subscriber wants to retain his number then he has the option of moving to some other service provider. He can also take a new mobile connection. In the year 2018, when Aircel discontinued its service, the subscribers had to find another operator. TRAI had given them a unique porting code through which they could opt for mobile number portability. He was given a deadline of October 2019 to choose another network. Those who failed to send the porting request by then had to surrender their numbers.
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