Private Telcos Will Keep Running the Business
The government has clearly said that the businesses will continue as professionally run private companies. These businesses will not turn into PSUs, and the government can sell the shares it has at an appropriate time and thereby receive the amounts due. The move of taking equity in these private companies against the dues would help with reviving the sector to its fullest potential. The Indian government had announced a relief package last year in September with an aim to improve the cash flow situation of the telcos. It had also offered them the option to convert their deferred liabilities interest dues into equity for the centre. Bharti Airtel and Reliance Jio had turned down the offer of giving equity to the government, while Vodafone Idea and Tata Teleservices had accepted the equity conversion. This removes any potential threat to Vodafone Idea as a going concern, at least for the medium-term. Vodafone Idea needs to focus on improving mobile networks and reaching more places to add new customers. The government has firmly said that it is not looking to interfere with the businesses of the telcos. But how silent a partner the government will be in is something that only time will tell.
