Vodafone-Idea Might Merge Its Non Profit Circles With Profitable Circles: Report

Vodafone-Idea is reportedly working on a new strategy to reduce its burden. The company is likely to merge its six to seven weak circles with the other circles which are doing well. This means there are chances that employees might lose their jobs in those circles.

However, the company is also working on packages for those employees, reports Economic Times. The report reveals that the telco is even planning to hand-over its spectrum in those circles. "The mood is edgy in the organization and the sense of uncertainty has upset morale," a senior executive at the telco was quoted by the newspaper. Notably, the merged entity has completed its network integration in 17 circles. This means there are still five circles left.

This development came after the company has announced to pay the second tranche of dues to the Department of Telecommunication. It is worth mentioning that the Vodafone-Idea has already paid Rs. 3,500 crore to the ministry, and now it is planning to another Rs. 3,500 crore soon.

In fact, Vodafone global CEO has met the finance minister Nirmala Sitharaman and the telecom minister Ravi Shankar Prasad to discuss the current situation of the operator. The Vodafone-Idea is also looking for a relief package. So, that it can improve its situation in the country. The operator is also looking for 15 years' time to pay the dues.

On the other hand, the report reveals that this week the cabinet is likely to announce a bailout package for the sector. The sector is under a lot of financial crisis due to the average gross revenue dues. The operators were asked to pay Rs. 1.47 lakh dues, to the DOT.

However both Airtel and Vodafone-Idea have asked for more time to pay the dues, and now the next hearing is lined up for March 17, 2020. However, analysts close to the development believe that ministry will announce some relief before the Supreme Court hearing.