The Vodafone Group on Wednesday said the outlook for Vodafone Idea remains critical as the firm seeks relief from the Indian government in the wake of an “adverse judgement” by the Supreme Court on the issue of adjusted gross revenue (AGR).
“In October, the Supreme Court gave an adverse judgement in [AGR] case against the industry. The outlook for Vodafone Idea remains critical,” read a statement issued by the company, which revealed its earnings in the December 2019 quarter. “Vodafone Idea is actively seeking various forms of relief from the Indian government to ensure that the rate and level of payments it makes… is sustainable and it can meet its other commitments as they fall due,” it added.
The British telecom giant said the Department of Telecommunications had in November granted a two-year spectrum moratorium. “In January, the Supreme Court rejected the review petition filed by VIL and other industry participants in relation to the AGR judgement. Both VIL and Bharti Airtel have subsequently filed modification petitions, which are expected to be heard imminently, to request the Court to order the DoT to determine a payment schedule in relation to AGR dues and other reliefs,” it said.
Vodafone revealed Wednesday that it would cost about ^200 million ($221 million) over five years to remove Chinese group Huawei’s equipment from core 5G European activities. “We have now decided, as a result of the EU (recommendations) and the UK government’s decision, to take out Huawei equipment from the core,” Vodafone CEO Nick Read said in a third quarter conference call to reporters.
“It will take around five years to implement at a cost of approximately ^200 million,” he added, stressing that the cost would mostly apply to its European activities outside of Britain. The UK government decided last month to exclude Huawei from core parts of the 5G network and also to cap its share of the market at 35 per cent, insisting that “high risk vendors” would be excluded from “sensitive” activities.