Home > News > Industry news

Malaysia's Axiata exits Vodafone Idea, latest foreign investor to leave India

2020-08-21 10:30:14

 

Axiata Group Berhad has sold its residual stake in Vodafone Idea (VIL) and exited India’s telecom sector, having taken a substantial hit on its investments after a high-profile entry more than a decade ago.

 

The Malaysian telco's exit leaves only SingTel and Vodafone Group from among the old-time foreign investors in the debt-laden sector. Intense competition exacerbated by Reliance Jio’s entry in September 2016 with free voice calls and dirt-cheap data rates has already forced foreign carriers such as Norway’s Telenor, Russia’s Sistema JSFC, Japan’s NTT DoCoMo and Malaysia’s Maxis to exit the Indian telecom market.

 

Axiata had entered erstwhile the Idea Cellular back in 2008, splurging nearly $2 billion for a 20% stake in the carrier. It has seen the value of its holding plunge sharply over time, initially with Idea and then with Vodafone Idea, which has also seen its market-cap fall sharply and net worth shrink. Huge losses in the face of intense competition in the Indian telecom market, aggravated further by the adjusted gross revenue (AGR) dues crisis, have pushed VIL to the brink. 



  Telecom.com  
 
Recommended information
Malaysia
Malaysia's Axiata e
SK Telecom and DGB Daegu Bank to Launch Mobile Banking Powered by 5G Quantum Cryptography
SK Telecom and DGB D
Tele2 in Russia deploys 25,000 5G-ready Ericsson base stations
Tele2 in Russia depl
Ericsson achieves 100th 5G commercial agreement with unique communications service providers
Ericsson achieves 10