Steeped in debt, Vodafone India finally finds a silver lining in Amazon and Verizon who have resumed the talks to invest in stakes worth more than $4 billion in the telecom company. Amazon is a US-based multinational e-commerce company while Verizon is an American telecommunications company that offers wireless products and services.
Owing to the Supreme Court case deadlock and staggering debts, Vodafone India might have had a hard time surviving, let alone reviving itself. But the decision of SC to give telecom companies 10 years to pay a total of 71.4 trillion of dues may help them to resume the negotiations which were stalled in the process.
Vodafone India needs to pay around INR 50,400 crore to the government for a licence fee, spectrum usage charges, interest, and penalties. It has already paid INR 7,854 crore. The financial debt crunch hindered Vodafone from upgrading its network and stalled talks of investments by prospective stakeholders. But now, thanks to Amazon and Verizon, the fundraising procedure for Vodafone will be easier.
The powerful Jio-Facebook-Google alliance will prove to be strong competition for Vodafone India. Vodafone Creative India is the result of its joint venture with Vodafone US in India. Shares of Vodafone India have climbed 25 percent as a result of this possible telecom nexus.
The directors of Vodafone Creative Co. Ltd. will hold a meeting on September 4 to discuss prospective investment options in India and abroad. However, Amazon has a strong presence in India, unlike Verizon. So let’s see how this joint venture will be a boon to Vodafone Creative India.