Vi Might Lose More Market Share And Subscribers: Goldman Sachs

|

Vi (Vodafone-Idea) has been losing customers every quarter, and a new report by research firm Goldman Sachs believes that this trend will continue. The report said that the company is unlikely to make any investment in its operations in the country.

Vi Might Lose More Market Share And Subscribers: Goldman Sachs

 

"On our estimates, Vodafone Idea could potentially save Rs. 58 billion (5,800 crores) in cash flows annually if the AGR liability were lowered to its self-assessed value... We expect Vodafone Idea's FCF (free cash flow) to remain negative for the foreseeable future, irrespective of the level of the company's AGR dues," Goldman Sachs said in a report.

Apart from that, Vi has approached the Supreme Court to review the amount of its AGR as the operator believes that there is some error with the ministry's calculations. Similarly, Airtel and Tata Teleservices have asked the apex court to look into the matter.

Notably, Tata Teleservices has to pay Rs. 16, 789 crore as AGR dues as per Ministry of Communications. So far, the company has paid Rs. 4, 197 crore to the government; however, its self-assessment said that it has dues of about Rs. 2,197 crore.

However, on the other hand, the research firm said that even if the apex court accepts the request of Vodafone-Idea, it would not change the whole landscape. "While incrementally positive for Bharti Airtel and Vodafone Idea from a cash flow and net-debt standpoint, we believe AGR dues at the lower self-assessed levels would have little-to-no impact on the industry's competitive landscape," it said. On the other hand, the research firm said that there will sharp improvement in the Airtel business.

Most Read Articles
Best Mobiles in India

Read More About: vodafone idea

Best Phones

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Yes No
Settings X
X