Vodafone Demands Govt to 'Allow' Competition with Jio, Threatens to Withdraw from India

New Delhi, November 12, 2019:

World’s second-largest mobile operator, Vodafone, has issued an ultimatum to the Indian government that it would not pump in more capital in India.

Following this, the British media is calling Vodafone’s ultimatum a "potentially disastrous but fitting end to Vodafone’s big bet on India" where the destruction of value has been complete.

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Vodafone has told Indian authorities that it will not provide more capital for its India business unless there are provisions allowing it to compete with Reliance Jio.

According to British media reports, Vodafone’s CEO Nick Read has for all practical purposes, issued an ultimatum to the Indian government. Vodafone is scheduled to give its half-year report on Tuesday.

Read’s ultimatum communicated, “Either they should take their boots off the neck of the industry and allow it to better compete with Mukesh Ambani on 5G, or Vodafone Idea is destined for a potentially chaotic final act with potential repercussions for India''s international standing.”

Reportedly, the Vodafone chief executive has had enough in the Indian market as a major foreign investor. It is unhappy with the way several policy decisions have gone against it and favoured Reliance Jio.

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“Throughout, however, Indian officialdom welcomed Vodafone with all the warmth of a Himalayan mountaintop. It has been in court since the moment it arrived and used as a soft target by politicians and taxmen. The destruction of value has been complete,” a report said. It may be mentioned here that Vodafone is also facing a pile of debt in the home markets of UK.

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