Vi to Repay ₹49,000 Cr Spectrum Dues in 3 Years

Vodafone Idea (Vi) intends to clear its substantial spectrum dues, amounting to nearly ₹49,000 crore, within the next three years. This commitment, announced by Aditya Birla Group chairman Kumar Mangalam Birla, signals a potential turning point for lender confidence as the telco seeks crucial bank funding. The company's plan factors in servicing all scheduled spectrum payments, with deferred AGR liabilities extending to FY35.

However, the exact mechanism for servicing these payments remains unclear, with significant installments due in FY27, FY28, and FY29. Market analysts have voiced skepticism regarding Vi's ability to present a viable repayment strategy. Lenders, too, question the telco's projected cash flow generation, which must support network upgrades, debt repayment, and spectrum obligations.

Vi aims to meet these obligations through improved EBITDA, internal cash generation, and new bank funding, eschewing further payment moratoriums. This strategy runs parallel to a ₹45,000-crore capital expenditure program focused on expanding 4G coverage and accelerating 5G rollout across numerous cities. Operationally, the company has shown recent gains in subscriber additions and network expansion.

Financially, Vi strengthened its position in FY26 by raising ₹3,300 crore via non-convertible debentures and settling ₹6,394 crore in receivables. The telco's 5G services are expanding rapidly, and network capacity has seen a notable increase over the past six quarters. Vi aims for broad population coverage in its operating circles within the next year.