Two major US companies Amazon and Verizon Communications can buy stakes in Indian telecom company Vodafone Idea for about $ 400 million (about Rs 29,600 crore). After this news, shares of Vodafone Idea have gone up by 10 percent. The company’s losses have increased to Rs 25,460 crore in the April-June quarter. The company had a net loss of Rs 11,643 crore in the March quarter.
The newspaper Mint said in a report on Thursday that the talks between Amazon and Verizon Communications for the purchase of a stake in Vodafone-Idea Ltd have gone ahead. Due to the decision of the Supreme Court on AGR, the negotiations on it were put to a break. However, now negotiations on the deal have started again. Both companies have refused to comment on this to Reuters at the moment.
Earlier, the Supreme Court on Tuesday gave 10 years time to the telecom companies for payment of government dues. However, companies were asking for a time of at least 15 years, which was not accepted by the court. Let me tell you, AGR means adjusted gross revenue is the fee-sharing model between the government and the telecom companies. In 1999, it was made a revenue sharing fee model from the fixed license fee model. Telecom companies have to share a part of their total revenue with the government.
