INSUBCONTINENT EXCLUSIVE:
Vodafone has told Indian authorities that it will not provide more capital for its India business.The British media is calling Vodafone's
ultimatum not to pump in more capital in India, a "potentially disastrous but fitting end to Vodafone's big bet on India" where the
destruction of value has been complete.Global telecom player, Vodafone has told Indian authorities that it will not provide more capital for
its India business unless there are provisions allowing it to compete with Mukesh Ambani's Reliance Jio.According to British media
reports, Nick Read, Vodafone's CEO has for all practical purposes issued an ultimatum to the Indian government.Vodafone is scheduled to
give its half year report on Tuesday
Reports say that Mr Read has communicated to the Prime Minister Narendra Modi government that it will not provide any more capital in
India.Mr Read's ultimatum is to communicate to the government that "either they should take their boots off the neck of the industry and
allow it to better compete with Mukesh Ambani on 5G, or Vodafone Idea is destined for a potentially chaotic final act with potential
repercussions for India's international standing."Vodafone entered the market in 2007 via a multibillion-pound acquisition
Since then it has pumped in billions more, always hoping that the sheer scale of India would one day deliver returns to match
"Throughout, however, Indian officialdom welcomed Vodafone with all the warmth of a Himalayan mountaintop
It has been in court since the moment it arrived and used as a soft target by politicians and taxmen
The destruction of value has been complete," a report said.According to reports, the Vodafone chief executive has had enough in the Indian
market as a major foreign investor.Vodafone, the reports suggest is also unhappy with the way several policy decisions have gone against it
and favoured Reliance Jio.Shareholders have already written off the value of Vodafone Idea so if it goes bust the fallout should be readily
containable, the report said.Vodafone is also facing a pile of debt in the home markets of UK and would find it difficult to again invest so
much in India.Reports said that Mr Read, Vodafone's chief executive for little over a year, is one foreign investor who has had enough, it
seems.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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