As one of the world’s largest mobile operator, Vodafone never stops expanding its coverage to more areas around the world. One country that has long been under its coverage is India. According to Vodafone global CEO, Vittorio Colao, when he met PM Manmohan Singh, he delivered the company’s concerns and this would need PM’s direct involvement.
Vodafone is also recognized as reputable foreign investor in India that should follow the change of regulatory developments in India. For this, Vodafone should willingly write down the value of group’s business up to 25% or nearly Rs 20.000 crore or £2.3 billion. The investment Vodafone carried out to buy India’s telecom sector has the amount of $12 billion and it has invested another $4 billion since the first involvement.
Generally, Vodafone has become the second largest mobile operator in India and its coverage is superior to BSNL. During the last two years, Vodafone has paid more than Rs 13.000 crore includes the taxes and fees.
The major mobile operators in India like Sunil Bharti Mittal of Bharti Airtel, Colao of Vodafone, and Kumar Mangalam Birla of Idea were recently forced to deliver complaint regarding the regulatory environment right after the issue of Trai’s proposals related to 2G spectrum licensing and pricing.
Following the complaint, Colao made urgent flight to Delhi to have meeting with Sing on last June1 and returned at the same day. Later on, Colao explained the company’s concerns in a letter sent to the PM stated the Vodafone’s concern regarding the policy changes revealed the level of desperation. Colao added that the company faces a critical situation due to the new terms of the regulatory environment.
In the letter delivered to PM, Colao described three main points explaining the Vodafone’s investors in London and New York have been putting serious concern regarding the policy changes and stated than the fiscal and regulatory environment in India is not on conducive situation to support the successful investment.
According to updated article in Financial Times, Wall Street Journal and other major publications, the returns on investment has created many questions to appear. Learning the identification the article published, Colao strongly recommended India to remove the uncertainty and re-establish a stable and supporting regulatory and fiscal environment in nearly times.
He added, the Trai’s proposal should be reconsider immediately otherwise it will tie up industry in the future and affect the continuance of Vodafone by removing substantial revenue and impact the company existence as the one that has been investing the most especially in many rural areas in India.