“Once the exact guidelines are available, management will develop a new business plan and will come back to the board of directors to find out the exact financial needs of the business. He also talks to other stakeholders and once the board has given its approval we will get back to shareholders on the exact funding need going forward, ”Kapania said while responding to shareholder questions at the AGM. Wednesday.
The package will provide “short-term” financial relief to the company and the underlying structural reforms will strengthen VIL’s operations in the long term, he said.
Kapania said the back-up plan “is one of the big key factors” that will influence the business as well as the industry, especially the liquidity it offers. “The impact of the package will be seen on the sector and VIL. We will wait to see the final directives that will be issued by the government. “
Kapania, who recently took over from Kumar Mangalam Birla after stepping down from his post, said the back-up plan was going to be important in moving the industry forward and improving the company’s liquidity.
“… this sends a strong message that the government is extremely keen to ensure there are more than 3 players in the industry; and it has done important transformative work that will improve the overall functioning of telecommunications issues, ”he added.
The moratorium on all contributions will allow Vodafone Idea to further expand its 4G coverage and capacity and provide a deeper rural connection to its provider. “It will also allow the brand to invest in new technologies and services, including 5G whenever the ecosystem is ready and the spectrum is affordable,” he said.
Calling the reforms “revolutionary,” Kapania said the move would solve some long-standing problems in the industry and help telecom operators manage their free cash flow and provide operators with investable funds for the deployment of new investments in building long-term digital infrastructure.
“These reforms will promote the ease of doing business in the country by abolishing some of the archaic processes affecting telecommunications business operations. Further procedural reforms will be the key to smooth business operations and faster delivery of services to clients. “
Vodafone Idea again reiterated the need to increase tariffs, saying the company operates at “unsustainable tariffs”. “… there is a need to increase tariffs, which is essential for improving the performance of the business,” said Kapania.