Vodafone Might Hold Network Expansion As per the industry insiders, gear manufacturers have also got dues to recover from the telecom companies, which includes Vodafone Idea. These gear manufacturers include Huawei, Nokia, Ericsson, and ZTE, and these companies are now also concerned about the dues which they have to recover from VIL. A person aware of the matter remarked, “While existing orders are being fulfilled by the vendors, Vodafone Idea has put its new 4G expansion plans for greenfield sites on other major technology-driven investments on hold.” However, Vodafone Idea has held its ground and said that it continues to operate with its vendors normally, as it has been doing as usual. When posed with questions, the gear vendors, Huawei, Ericsson, ZTE, and Nokia did not return any answers. Vodafone Idea Network to Get Hit Amidst AGR Woes Not only Vodafone Idea, but other non-telecom and telecom companies are looking at dues worth Rs 1.47 lakh crore or more which are to be paid in January. In the October 24 order, Supreme Court had told the telecom companies to pay the dues within 3 months of the order. The analysts have also voiced their concerns in unison saying that Vodafone is likely to keep its plans of 4G network expansion on the sidelines so that it can divert the investment towards payment of the dues. But, the road is not smooth for Vodafone Idea since the decision to halt network expansion might cause the subscribers to migrate to other telecom operators who are offering better services and network presence. Already Bharti Airtel and Reliance Jio have a lead over Vodafone Idea in this regard. While, Vodafone Idea 175,881 eNode–B or BTS under its name, Bharti Airtel and Reliance Jio, each have 326,744 and 746,147 respectively. Gear Vendors Also Concerned About Retrieving Payments Vodafone Idea is staring at dues worth Rs 53,000 crore, whereas Airtel’s dues have compiled up to be Rs 35,500 crore. As per the people aware of the matter, Bharti Airtel is also likely to slow down its 4G network expansion on the back of these massive dues. However, Airtel has denied any such claims saying that it continues expansion at the same pace. The vendors of these telecom companies, especially Vodafone Idea, are also concerned about the payments. While in the case of ZTE, the payment terms are the easiest for Vodafone Idea. However, unlike ZTE and Huawei, the European vendors, Ericsson and Nokia have more exposure in the dealing, and they are wary of the payment terms and are likely to seek immediate clarification.
