In a recent update, Vodafone Idea has set the record straight, denying any ongoing talks with Elon Musk’s Starlink and dismissing rumors of a stake sale. The telecom operator responded to a report in the Mint newspaper, asserting that there are no discussions with Elon Musk or any related party.
We are not aware of the basis of the said news item,” stated the company in an official filing. “The company has emphatically declared that it is not involved in any discussions with the mentioned party, thereby offering a concise and unambiguous clarification on the matter.
This clarification follows a surge in Vodafone Idea’s stock, rising nearly 30% over the last two trading sessions. The company aims to address concerns and quash speculations regarding its stake and potential collaboration with Elon Musk’s ventures.
Vodafone Idea’s management had previously indicated in October 2023 that the committed promoter funding of ₹2,000 crore was expected to conclude in the December quarter. During the June quarter results, the company highlighted that the promoter group entity would provide financial support, either directly or indirectly, amounting to ₹2,000 crore.
Regarding its 5G rollout plans, Vodafone Idea’s management revealed ongoing discussions with vendors. It emphasized that a significant expansion of 4G coverage and the 5G rollout would progress after finalizing funding arrangements.
At the India Mobile Congress this year, Kumar Mangalam Birla, Chairman of Aditya Birla Group, which owns Vodafone Idea, affirmed the company’s commitment to make “significant investments” in the next few quarters for the 5G rollout. However, a specific timeline for the rollout was not provided.
Unlike competitors Reliance Jio and Bharti Airtel, which have almost completed their Pan-India rollout of services, Vodafone Idea is yet to provide clarity on its 5G rollout plans.
Despite the clarification, shares of Vodafone Idea have retraced their gains, currently trading 4.4% lower at ₹16.3.
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