Vodafone India, a subsidiary company of
Vodafone Group plc
) was denied license extension in three major operating circles
in India namely, Delhi, Mumbai and Kolkata. The company's
operating license would expire in Nov 2014. According to market
news, Indian regulators have asked the company to bid auction for
airwaves in areas in which they have completed 20 years of
operations including key metropolises.
The Indian market remains one of the significant markets for
Vodafone despite regulatory disputes that impede its growth in
that country. Given the growth opportunities, the company is
accelerating its investments in India to build infrastructure. In
recently published reports, the company stated that it invested
approximately INR 10 billion in 2012 in major cities like Delhi,
Mumbai and Kolkata.
If the disputes continue, debarring Vodafone for continuing
operations in lucrative zones, it would distress the company's
financials, as it has already infused huge capital in these
cities. Further, Vodafone's entering into a new license auction
remains uncertain as it has already moved a petition against
spectrum auction held in India, last month. The company went
against the decision of the Department of Telecommunication in
India to put up an auction for 900 Mhz spectrum by taking away
licenses for the same from operators.
Based in Newbury, United Kingdom, Vodafone Group is the world's
largest revenue-generating wireless communications operator and
the second largest carrier after
China Mobile Limited
), based on subscription. In the European market, the company
operates with other industry players like
Telecom Italia S.P.A
Vodafone has a Zacks Rank #3 (Hold).
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