The london based Vodafone Plc on Wednesday expressed hope that the new government would take quick decisions that would help doing business in India. Vittorio Colao, chief executive officer, Vodafone Group told media persons during the press conference that the outlook in the country has changed after the elections and he felt the Modi Government was pro-business.
"I think the mood of investors with the new government of India is positive because the intentions are good. My recommendation is make sure that political intentions (are) translated into administrative acts," Colao said.
Vodafone, which is facing a tax liability of over Rs.11,200 crore along with interest on its 2007 acquisition of Honk Kong-based Hutchison Whampoa ltd's stake in India's then telecom major Hutchison Essar, said the private sector can deliver provided simple rules are framed and enough resources provided. The company also didn't rule out the possibility of finding a solution of the tax dispute outside arbitration. Colao said that outside arbitration process is at a preliminary stage.
India is the third largest revenue generator for Vodafone. Colao said, "We want India to come on top of our list. For which we need more spectrum. The company has invested Rs.70,000 crore in India so far and has 92 million rural customers."
The company is open for consolidation in India in case the deal is financially viable. "I think we are open to looking at consolidation in India but ofcourse, it must make sense from a financial point of view...We can't throw our money just for the sake of consolidation," Vittorio Colao added.
Colao, who is on a short visit to India, also released the fourth edition of its annual sustainability report. On the occasion, Colao presented a cheque of Rs 12 million to Safeena Hussain of Vodafone Foundation's NGO partner, Educate Girls.
Marten Pieters, managing director and chief executive officer, Vodafone India said "the conditions are not there be it the merger and acquisition rules, spectrum sharing and trading which can facilitate the consolidation process."
"last auction we had to do the same thing in metros but atleast we had 1800 MHz spectrum to fall back on but now we have few circles where there is no additional spectrum available, so our business is more or less put up for sale," he said.
"There are a few big circles which are coming for renewal and we have to bid back our spectrum, the situation is really bad. last auction we had to do the same thing in metros but atleast we had 1800 MHz spectrum to fall back on but now we have few circles where there is no additional spectrum available, so our business is more or less put up for sale," he said.
The Vodafone India head has termed it as "predatory competition" because actually it means that anybody can bid for free for its business.