TFI’s one and a half-year-old prediction is about to come back true as BSNL is ready to amass Vodafone-Idea

Kumar Mangalam Birla, the Chairman of Aditya Birla Group and telecom firm Vodafone Idea (VIL) has thrown within the towel and supplied his group’s stakes within the firm to any authorities/public entity (PSU) that may preserve the corporate afloat as money owed proceed to mount.Stating that the corporate was about to achieve an irretrievable level of collapse, if not given a hand, Birla wrote a letter to cabinet secretary Rajiv Gauba and lamented, “It is with a sense of duty towards 27 crore Indians connected by Vodafone Idea, I am more than willing to hand over my stake in the company to any entity — public sector/government /domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern,”If the federal government does settle for the proposal and strikes forward, it will stamp a seal of approval on the prophecy made by TFI, one and a half years in the past the place former TFI senior Columnist Amit Agrahari had argued that BSNL ought to ideally tie-up with Vodafone-Idea and be certain that duopoly just isn’t created within the important sector of the financial system. Agrahari’s argument was just lately picked up by Deutsche Bank as effectively and reiterated verbatim.What TFI thinks as we speak, international monetary giants assume a yr and a half later.Cc: @amit_agrahari94 pic.twitter.com/AQSCJQ1OXV— Atul Mishra (@TheAtulMishra) July 27, 2021“To save the telecom sector from duopoly which is neither good for the market nor the buyer, the very best wager can be ‘to nationalize Vodafone Idea and merge it with BSNL-MTNL. The government has already said that there are no intentions to close down BSNL- despite the 70,000 debt of the company and successive yearly loss- as it is a strategic asset.” Agrahari had stated.Thank You @TheAtulMishra Sir for the opportunity to explore these ideas.One good thing about good literature is that it remains there for years, decades, centuries, and sometimes millennia. https://t.co/Wka7ZucQlu— Amit Agrahari (@amit_agrahari94) July 27, 2021Read More: Why merger with BSNL is best solution to Vodafone crisis to save taxpayer’s cashVodafone and Idea had joined forces in 2018 to battle towards Mukesh Ambani’s Jio however owing to the aggressive capturing of the market by the latter, the united entrance didn’t pay any dividends. According to the newest numbers, as of March 2021, the excellent debt of the corporate was estimated to be Rs 1.8 lakh crore.If the corporate goes bankrupt, the lenders to the corporate, most of that are public sector banks, will bear the losses. At current, Vi owes the Department of Telecommunications greater than Rs 1.5 lakh crore by means of AGR and deferred spectrum fee dues. And as co-promoters, UK’s Vodafone Group Plc and the Aditya Birla Group of India personal 44.39 per cent and 27.66 per cent stakes.The firm stands on the point of a collapse and the merger would additionally save the subscribers of Vodafone and Idea, who, in any other case, must search for different firms. As India heads for the revolutionary 5G market and given the significance of individuals’s knowledge in future National safety and cyber warfare — having a nationwide participant with the biggest buyer share is a good suggestion. And the federal government must spend solely 16,000-17,000 crore rupees for that, which is lower than the general public sector’s financial institution’s publicity to the corporate.