By Hormaz Fatakia
Telecom operator Vodafone Idea Ltd. has clarified that the company is not in any discussions with Elon Musk’s Starlink.
“We are not aware of the basis of the said news item,” the company said in an exchange filing. “The company is not in any such discussion with the named party,” it said.
The company clarified on a report published in the Mint newspaper, which also cited news reports claiming that the government could sell its 33% stake in Vodafone Idea to the Musk, the owner of “X” and Tesla.
Clarification was sought from the telecom service provider after the stock had risen nearly 30% over the last two trading sessions.
Vodafone Idea’s management in October 2023 had mentioned that the promised promoter funding commitment of ₹2,000 crore should close in the current December quarter. During the June quarter results, the company mentioned that the promoter group entity will provide direct or indirect financial support to the extent of ₹2,000 crore.
With regards to its 5G rollout, the company’s management said that it is in talks with vendors for the same, adding that a significant expansion of the 4G coverage and the 5G rollout will happen after the funding is tied up.
At the India Mobile Congress this year, Aditya Birla Group Chairman Kumar Mangalam Birla said the company will make “significant investments” over the next few quarters for the 5G rollout. However, he did not specify a timeline for the rollout.
There is still no clarity on the 5G rollout from the company. At the same time, competitors like Reliance Jio and Bharti Airtel have nearly completed their respective Pan-India rollout of their services.
Shares of Vodafone Idea have given up gains and are currently trading 4.4% lower at ₹16.3.