Best of BS Opinion: Vodafone must quickly raise capital, improve services

From Vodafone Idea's financial struggles and Bengal's political tensions to oil market reactions during the Iran conflict, here are the top opinions of the day

Hello and welcome to Best of BS Opinion, our wrap of the day's Opinion page.

 

Our first editorial argues that Vodafone Idea must convert improved optics into credible financial commitments if it is to remain a viable third telecom operator. Kumar Mangalam Birla’s return as non-executive chairman may reassure markets, but lenders, fearing a default, remain wary of the company’s large debt burden and weak competitive position vis-a-vis Reliance Jio and Bharti Airtel. Additionally, the promoters need to show some skin in the game by injecting capital - Birla has mooted a $5 billion capex plan - and must provide guarantees given the company has received substantial government relief on AGR dues and spectrum payments. At the same time, the government must implement broader sector reforms, including a review of levies and duties to reduce the burden on operators who constantly need to invest in new technology. For its part, Vi must look to raise funds more aggressively, while the industry as a whole needs to rationalise tariffs and improve the quality of services. 

 

 

Mamata Banerjee's refusal to follow democratic convention by not resigning as CM after an electoral drubbing has worsened Bengal’s already violent political climate, says our second editorial. She has only magnified her status as a sore, even ignorant, loser since she has no constitutional locus standi to stay in office because her term is tied to that of the Assembly. Her decision also undermines institutional guardrails that sustain democratic legitimacy. While the allegation of irregularities linked to voter roll deletions under the Special Intensive Revision (SIR) exercise may have some legs, legal remedies to challenge the SIR deletions exist through the courts. Banerjee must pursue constitutional channels, rather than adopt confrontational street politics, in order to preserve political stability in the state.

 

The behaviour of the oil markets - which have priced the commodity well below what fundamentals would warrant - during one of the biggest oil shocks remains one of the great mysteries of the Iran conflict, writes TT Ram Mohan. It is well-known that the disruption cannot be reversed immediately even if the conflict stops. Nonetheless, the pricing pattern points to a deep chasm between analysts and the oil markets; the latter seem to be pricing based more on President Donald Trump's upbeat declarations rather than what is actually happening. And should oil prices finally catch up to reality, the prospects for the world economy are dire, with the possibility of much weaker global growth and near-recessionary conditions. 

 

In his column, Ajay Kumar argues that West Asian nations' security model - which they have followed since the UK's final withdrawal in the '60s - has fractured amid the ongoing crisis, exposing the limits of its reliance on the US, China, Turkey, and Iran. Moreover, their security arrangements with the US are hostage to the US' domestic politics and shifting global priorities. Following the conflict, the shift in geopolitical alignments has created room for India to add a security dimension to its relationships across various regional actors, particularly given its civilisational links, economic integration, substantial diaspora, and diplomatic credibility. Kumar also calls for a formal India-Gulf strategic compact spanning maritime security, defence manufacturing, energy cooperation, trade corridors, cybersecurity, and financial integration to create a more durable regional balance.

 

In her review, Arushi Bhaskar says The Rules That Make Us: How Culture Shapes the Way We Act, Think, Believe and Buy by Oliver Sweet offers an engaging introduction to business anthropology and the role of culture in shaping behaviour, consumption, and workplaces. She argues that the book succeeds in making anthropology accessible and relevant to corporate strategy, particularly in areas such as behavioural change and post-pandemic work culture. However, the review criticises Sweet for superficial examples, repetitive arguments, and overly polished descriptions of corporate clients that sometimes resemble marketing copy rather than rigorous analysis.