Vodafone Idea MD says company will survive, lauds telecom reforms

Amid uncertainty over the future of cash-strapped Vodafone Idea, the company's Managing Director Ravinder Takkar exuded confidence that "Vi will survive".

There is no doubt that Vodafone Idea will survive and compete in the market, Takkar told The Economic Times in an interview. "It was always our conviction but not always understood by other market participants," he said.

His remarks come after the Centre recently rolled out much-needed reforms in the telecom sector, which may help the debt-trapped telecom firm stay afloat in a competing market with rivals like Reliance Jio and Bharti Airtel.

Also Read | Can the world’s most painful telecom market reform?

"The government has sent a message that this is an important sector, important for digitisation of the country, has a huge impact on growth and digitisation of the economy and they are willing to make changes for growth of the economy," Takkar said, lauding the Centre's "boldest step" in the telecom sector.

He added that through the measures, the government has made it clear that it wants three players in the market. "They do not want a duopoly and certainly do not want a monopoly in the sector. It is critical for the country and government that there are three (private) players," he said.

Assuring that the company is in process of raising funds from investors, he said the stakeholders are "more open" to the conversion of debt into government equity. He added that further details are awaited on a final move. The company also has the option to take the moratorium of four years and then repay the dues.

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