Devesh
Core Member
Vodafone Group Plc chief executive officer Vittorio Colao said the company is in talks with the Aditya Birla Group to create a “self-funded” Indian joint venture with equal rights to take on the competitive threat posed by Reliance Jio Infocomm and the move doesn’t portend its exit from what was once a key market.
The intent of the JV, which will be the largest in India with the widest spectrum coverage and the best management team, is to “self-fund and we are working on discussing mechanics and agreements”, Colao said on Thursday in his first public comments since the talks were revealed.
The top executive described India as “a special situation” that’s dragging the group’s financials. Vodafone said it will meet only the lower end of its operating profit guidance range due to “continued uncertainty” in the country. India contributes almost 11 per cent to Vodafone’s global service revenue and is still the fastestgrowing in terms of subscriber additions, but no longer so in terms of the pace of revenue growth.
Responding to a question, he denied that the planned merger was a precursor to Vodafone’s departure from India.
“This is not an exit. This is about creating a stronger asset, create the No. 1 telco in the country…build the largest network in India and build the best management team through a combination of the two management teams,” Colao said on a call after the British company’s thirdquarter earnings. “We are flexible and pragmatic.”
merger with idea doesn't mean exit of vodafone from india: ceo vittorio colao, Telecom News, ET Telecom
The intent of the JV, which will be the largest in India with the widest spectrum coverage and the best management team, is to “self-fund and we are working on discussing mechanics and agreements”, Colao said on Thursday in his first public comments since the talks were revealed.
The top executive described India as “a special situation” that’s dragging the group’s financials. Vodafone said it will meet only the lower end of its operating profit guidance range due to “continued uncertainty” in the country. India contributes almost 11 per cent to Vodafone’s global service revenue and is still the fastestgrowing in terms of subscriber additions, but no longer so in terms of the pace of revenue growth.
Responding to a question, he denied that the planned merger was a precursor to Vodafone’s departure from India.
“This is not an exit. This is about creating a stronger asset, create the No. 1 telco in the country…build the largest network in India and build the best management team through a combination of the two management teams,” Colao said on a call after the British company’s thirdquarter earnings. “We are flexible and pragmatic.”
merger with idea doesn't mean exit of vodafone from india: ceo vittorio colao, Telecom News, ET Telecom