- E-commerce major Amazon and US telecom company Verizon Communication is in talks to invest $4 billion in Vodafone-Idea limited.
- The investment of $4 billion can help Vodafone-Idea to invest in its infrastructure and pay its AGR dues.
- Vodafone-Idea the third largest telecom operator in India recorded a loss of total Rs 73,878 crores in FY2019-2020
According to the LiveMint report, E-commerce major Amazon and U.S telecom company Verizon Communication is in talks for an investment of $4 billion (approx Rs 30,000 crores ) in Vodafone-Idea limited.
Verizon Communications the second-largest telecom company in the USA looking to invest in the Indian market by fueling up Vodafone-Idea because of its potential growth.
Furthermore, The investment can help the Vodafone-Idea to invest in their future projects as well as to pay its AGR (Adjusted Gross Revenue) to the government.
The launch of Jio 4G has crashed the revenue of all the telecom companies in India including Airtel and Vodafone-Idea.
In August 2018, Due to a decrease in revenue and AGR dues, Vodafone decided to merge with Idea limited to continue its operation in India.
Moreover, Amazon and Verizon Communication may invest $4 billion for the exchange of 10% stakes in the Vodafone-Idea limited.
Vodafone-Idea is struggling financially to operate its business due to a decrease in revenue and AGR (Adjusted Gross Revenue) that they need to pay to the government.
On Tuesday, September 1, Vodafone-Idea got a huge breath after the supreme court made changes to AGR dues. SC exempted the telecom companies by giving a period of up to ten years to their AGR dues.
Further, Vodafone-Idea needs funds to invest in its business and pay AGR due to continuing operating its business in the country.