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Vodafone May Lose Access To Towers Over Unpaid Dues: Report

Indus Towers has asked Vodafone Idea in strong words to pay the due or the connection would be cut

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Tower services company, Indus Towers has warned Vodafone Idea that it may stop using their towers from November if the company does not pay its outstanding bills soon.

At present, Vodafone owes tower companies Rs 10,000 crore, out of which Indus Tower's share is Rs 7,000 crore. Hence, the tower company has asked Vodafone Idea in strong words to pay the due or the connection would be cut. If this happens, Vodafone Idea customers will have to face connectivity issues from November, that is, they will not be able to use services ranging from mobile calls to internet.

Actually, as per the ET report, in the board meeting of Indus Towers, concerns were raised over the increasing dues and it was found that Vodafone Idea has the largest share in it. After this, the company has asked Vodafone Idea to clear the entire dues by October. Indus Tower's profit declined by 66 per cent to Rs 477 crore in the June quarter results. At the same time, according to the company, it was supposed to get about Rs 6200 crore during this period, but it was not received, due to which its profit has rolled. Due to rising dues, Indus Towers has had to make provision of Rs 1,200 crore, which has increased the pressure on the company.

In the June quarter, payments related to business activities to Vodafone have increased to about Rs 15,000 crore. This includes payments to tower firms, payments to vendors and other suppliers. The company is currently trying to raise Rs 20,000 crore through debt and equity, but so far it has not succeeded. The total debt on the company as of the end of June was Rs 1.98 lakh crore out of which there is also a debt of Rs 1.16 lakh crore related to spectrum.

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indus towers Vodafone idea