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Vodafone Idea Limited (VIL) has decided to defer its annual 5G spectrum purchase instalment by a month but is ready to pay the interest for the delay. The company has informed the Department of Telecommunications (DoT), Government of India, that it intends to pay the spectrum auction instalment of Rs 1,680 crore, which is due on August 17, 2023, within a grace period of 30 days with interest, in accordance with the terms of the Notice Inviting Applications (NIA) for the auction.

Last year, VIL acquired 5G spectrum worth Rs 18,799 crore. The company had opted to settle its dues to the government in 20 equal instalments and had made the initial payment of Rs 1,680 crore in August 2022.

In its earnings report for April to June 2023, VIL reported a loss of Rs 7,840 crore. However, its Average Revenue Per User (ARPU) increased by 3% to reach Rs 139. The company also noted a growth in their 4G customer base, from 122.6 million to 122.9 million compared to the previous quarter. On the downside, VIL lost 4.5 million mobile subscribers, bringing its user base to 221.4 million as of June 2023.

Additionally, one of VIL’s promoters has expressed willingness to infuse Rs 2,000 crore in the event of any fund requirement to meet its impending payment obligation to DoT.

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