Vodafone CEO Says India Operation Is at Risk of Collapse6Photo© gadgets.ndtv.com

Vodafone CEO Says India Operation Is at Risk of Collapse

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The price wars in the Indian telecom market have pushed the value of Vodafone's local joint venture to zero or nil as Vodafone CEO Nick Read indicated that the Indian operation is headed for liquidation unless the Indian government provides relief on mobile spectrum fees. The parent company, Vodafone, has written off the book value of the Indian business.

As per financial results released by Vodafone Group on Tuesday, the book value of Vodafone's 45 percent stake in joint venture, Vodafone Idea, has slumped to zero in November 2019. Contrast this with the fact that the book value was more than EUR 2 billion in June 2018, but in May of this year, the book value had been reduced to EUR 1.5 billion.

In the financial results released on Tuesday, most of Vodafone's bad news came from India. This included write-downs, losses, reduced cash flows and provisions for the Supreme Court judgement.