Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>Airtel has six times more cash than <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> Idea.</li><li>Both Reliance Jio and Airtel have nearly 1.5 times more subscribers than Vodafone Idea</li><li>Vodafone Idea has more spectrum compared to Jio but still gets the least amount of traffic.</li><li>The only thing it has more than others is debt. At the end of March, 2021, Vodafone Idea’s debt stood at ₹1.75 lakh crore, while Airtel’s debt stood at ₹1.53 lakh crore.</li></ul>Vodafone Idea’s situation continues to worsen, in terms of market share, revenue as well as the value of the company. On the other hand, its rivals, Bharti Airtel and Reliance Jio (owned by the country’s richest man Mukesh Ambani) continue to get stronger, often at the cost of Vodafone Idea. People are questioning the possibility of its survival. Even if it does get bailed out one way or another, the company will have a lot of catching up to do with its larger peers like Sunil Mittal’s Airtel and Ambani’s Reliance Jio. The loss of competitive muscle will only get worse the longer it remains in the current limbo. No wonder <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-birla-offers-to-give-up-his-27-stake-in-vodafone-idea/articleshow/84969189.cms">its Indian promoter Kumar Mangalam Birla</a> wants to give up his stake in the company, and his British partner Vodafone is not willing to sink any more money into this joint venture in India. Birla has also resigned as the non-executive director and chairman of the board of Vodafone Idea, a request which has been accepted by the company. Not surprisingly, the stock took a tumble. <div type="image" title="Vodafone Idea share price" msid="85035864" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Airtel has six times more cash than Vodafone Idea" comment="subhead" text="Airtel has six times more cash than Vodafone Idea">Airtel has six times more cash than Vodafone Idea</cmsannotation> As of March 31, 2021, Vodafone Idea had ₹2,216 crore in the form of cash and bank balances. This is six times lower than Airtel’s reported cash and bank balance in the same period. <cmsannotation type="cmsannotation" annotationid="The only thing that Vodafone has more of, than Airtel and Jio, is debt" comment="subhead" text="The only thing that Vodafone has more of, than Airtel and Jio, is debt">The only thing that Vodafone has more of, than Airtel and Jio, is debt</cmsannotation> The cash crunch will only get worse when it has to pay up the dues <a href="https://www.businessinsider.in/business/telecom/news/its-the-day-airtel-and-vodafone-idea-have-been-waiting-for-heres-the-agr-case-timeline-of-26-years/articleshow/77845908.cms">ordered by the Supreme court</a>, amounting to ₹58,631 crore. Of this, ₹5,034 crore falls due in December 2021 – an amount that the telco doesn’t seem to be in a position to pay. In comparison, Airtel’s balance AGR liability stands at ₹25,976 crore, which means its current liability comes to ₹2,598 crore. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Total AGR demand (in crore) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">AGR dues paid (in crore) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Balance (in crore) </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹58,254 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹7,854 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹50,339 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹43,980 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹18,004 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹25,976 </td></tr></tbody><tbody></tbody><tbody></tbody></table> At the end of March, 2021, Vodafone Idea’s debt stood at ₹1.75 lakh crore, while Airtel’s debt stood at ₹1.53 lakh crore. <cmsannotation type="cmsannotation" annotationid="Vodafone is losing both subscribers and revenue at a fast pace" comment="subhead" text="Vodafone is losing both subscribers and revenue at a fast pace">Vodafone is losing both subscribers and revenue at a fast pace</cmsannotation> <div type="image" title="Vodafone Idea, Airtel, Reliance Jio subscribers May 2021." msid="85035881" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea, Airtel and Reliance Jio subscribers.&amp;lt;/p&amp;gt;"></div> Since the beginning of 2020, Vodafone Idea has lost over 51 million subscribers. In the same period, Airtel and Reliance Jio have gained over 21 million and 62 million subscribers, respectively. To make matters worse, Vodafone is losing the relatively lucrative 4G subscribers, too – in May, for each 2G/3G subscriber it lost, three 4G subscribers ported out from the operator. <div type="image" title="Vodafone Idea, Airtel, Reliance Jio ARPU March, 2021." msid="85035904" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea, Airtel and Reliance Jio ARPU as of March, 2021.&amp;lt;/p&amp;gt;"></div> The average revenue that Vodafone Idea makes from each of its users is also under pressure. According to the company’s latest statements, the average revenue per user stood at ₹107 at the end of March, 2021, down from ₹121 three months prior. For comparison, Airtel’s ARPU in the same period was ₹145, while Jio stood at ₹138. The problem with lesser ARPU has become a vicious cycle in the case of Vodafone Idea. If it raises tariffs to improve its earnings, and others don’t, the company will lose more subscribers. If others follow VI in raising tariffs, they make more money, which can be later used to edge it out. The longer VI waits for others to make the first move, the more money it bleeds. <cmsannotation type="cmsannotation" annotationid="Vodafone has more spectrum compared to Jio but still gets the least amount of traffic" comment="subhead" text="Vodafone has more spectrum compared to Jio but still gets the least amount of traffic">Vodafone has more spectrum compared to Jio but still gets the least amount of traffic</cmsannotation> According to data from a UBS report dated July 29, here’s how much spectrum all the three telecom operators held at the end of March, 2021: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Spectrum holding </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">2,112 MHz </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">1,768 MHz </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Reliance Jio </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">1,752 MHz </td></tr></tbody><tbody></tbody></table> Source: UBS, as of March, 2021 Despite holding the second largest chunk of spectrum, Vodafone Idea’s inability to upgrade its users to 4G has hampered its potential – both in terms of the number of 4G subscribers as well as the amount of data it serves. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">4G subscribers (in million) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Total data (in million GB) </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Reliance Jio </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">426.6 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">16,700 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">179.3 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">9,207 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">113.9 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">4,856 </td></tr></tbody></table> Source: UBS, as of March, 2021 <cmsannotation type="cmsannotation" annotationid="The odds are stacked against Vodafone Idea" comment="subhead" text="The odds are stacked against Vodafone Idea">The odds are stacked against Vodafone Idea</cmsannotation> In a report dated July 29, Goldman Sachs maintained its ‘Sell’ rating for Vodafone Idea, with the target price set at ₹3 per share, suggesting that there is a further likelihood of a 60% decline in the telco’s share price. “It is well-flagged that Vodafone Idea has large repayments due starting Dec ‘21, and its balance sheet is stressed,” the report adds. “If Vodafone Idea is unable to repair its balance sheet quickly, we see an accelerated erosion in the company’s market share,” the report explains. On the other hand, analysts are bullish on Airtel. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Brokerage </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Target price </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Upside </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">JP Morgan </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹790 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">38% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Credit Suisse </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹750 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">31% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">CLSA </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹730 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">27% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Goldman Sachs </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹675 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">17% </td></tr></tbody></table> Note: Upside compared to Airtel’s share price of ₹574, on August 4, 2021 SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/as-vodafone-idea-shares-dive-10-and-more-heres-a-look-at-what-analysts-had-to-say-about-it-prospect-in-recent-weeks/articleshow/84999673.cms">As Vodafone Idea shares dive 10% and more, here's a look at what analysts had to say about it prospect in recent weeks</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-shares-fall-as-sc-rejects-agr-dues-re-computation-appeal/articleshow/84668288.cms">Vodafone Idea sinks nearly 10% and Airtel tumbles a bit after India’s Supreme Court denies a discount on past dues</a> <a href="https://www.businessinsider.in/business/telecom/news/its-the-day-airtel-and-vodafone-idea-have-been-waiting-for-heres-the-agr-case-timeline-of-26-years/articleshow/77845908.cms">Airtel and Vodafone Idea get 10 years to repay AGR dues – here’s a timeline of the case</a>

You Searched For "kumar bilra" and got 1 results

The enormous gap between Vodafone Idea on one hand, Airtel and Jio on the other

Rounak Jain

Popular Keywords

Buying Guides