Vodafone Idea may be strategizing structural changes to put the business back on track after the relief came in from the government on Adjusted Gross Revenue (AGR) dues. The Cabinet, on last Wednesday, approved a relief package for the telecom sector while announcing a moratorium of 4 years on AGR dues.
Vodafone Idea is not really looking at banking on equity payments for the dues and interest to the government after the telecom package has been announced, say sources with direct knowledge. In fact, it will defeat the purpose of ownership and with this kind of a relief given now, they will try to put their business back on track.
For that, Vodafone idea is looking at strategizing a new plan for a three- pronged approach- one is going to be the improved management skillsets, second is going to be sharpening their competitive edge because there is fierce competition in the sector and relief is only from the government dues and not from the telecom competition. The third one is going to be upgrading its network from 2G to 4G. So, these are the three most important things that they are right now focusing on, sources told CNBC-TV18.
Also, there could be a rethink on the management capability and as per the agreement, CEO is decided by Vodafone Group PLC, and Aditya Birla Group decides on the CFO. So, whether or not there is some rethink on that needs to be seen, going forward.
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