Amazon Targets Jio’s Influence on Indian Market with Vodafone Investment
Amazon Targets Jio’s Influence on Indian Market with Vodafone Investment – After being snubbed by Google, which ended up backing rival Reliance Jio, Indian telecom giant Vodafone Idea is now on the brink of raising $4 Bn from US telecom company Verizon and tech giant Amazon, consistent with a Mint report citing sources.
The companies are said to be in talks to take a position quite $4 Bn within the Vodafone Idea in exchange for a tenth stake. The talks were reportedly paused as Vodafone-Idea awaited the Supreme Court verdict on staggered payments of the AGR dues which have threatened Vodafone-Idea’s survival over the past year.
Vodafone got a breather from the SC, on September 1, which gave telecom companies up to 10 years to pay the INR 1.4 Lakh Cr () in dues. Vodafone-Idea had told the court that it had been on the verge of bankruptcy and would need to finish up its business.
Of the combined dues, Vodafone-Idea alone must pay around INR 50,400 Cr to the govt in license fee, spectrum usage charges, interest, and penalties. it’s already paid INR 7,854 Cr. The Apex Court had issued a deadline of January 23, 2020, for the corporate to clear the dues, but it had did not do so.
In response to the SC decision, Aditya Birla Group chairman Kumar Mangalam Birla had said that if the govt doesn’t provide relief to the organization then it’ll be left with no option but to “shut shop”.
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