Spectrum Surge, Stake Shifts, and Survival Stakes: India’s Telecom Titans Face a Game-Changing Week

Vodafone Idea announced today that its financial pressures worsened after the Supreme Court rejected its request for relief on adjusted gross revenue (AGR) dues, which caused its stock to fall again for a second consecutive day. The telecom operator continued to be under severe financial stress with approximately ₹83,400 crore in AGR dues and stated it did not foresee being able to operate after FY2025–26 without substantial government or investor support. When the government’s four-year moratorium on AGR payments ends in September 2025, Vodafone Idea will have to pay around ₹18,000 crore a year, which is almost double what its cash flow is now. Without fresh funding or relief, the company may not be viable.

 

The Indian government has also released draft rules as part of a significant policy shift to delicense 6 GHz spectrum (5925–6425 MHz) that would boost the uptake of Wi-Fi 6 broadband devices. The draft rules effectively delicense low power wireless devices in the 6 GHz band, which could boost the proliferation of high-speed internet access in homes and offices across the country. Stakeholders can provide feedback on the draft rules until June 15, and once feedback is collected, the framework will be decided by the government. 

 

Separately, Singapore Telecommunications (Singtel) has divested a 1.2% stake in Bharti Airtel for $1.54 billion, reducing its ownership to 28.3%. The sale of the stake fits in with Singtel’s commitment to recycling capital and eventually aligning its stake to match its partner and Airtel’s parent company, Bharti Enterprises. 

 

Source: Economic Times, India TV News, Reuters, CNBC TV18, Angel One, TelecomTalk