Today is a very special day for the shareholders of Vodafone Idea . Due to a major decision of the government, its shares saw a rise of 17 percent (till 10.40 am). This rise came after the Cabinet decided to end the requirement of telecom operators to provide bank guarantees for spectrum purchased till 2022. Vodafone Idea benefited the most from this decision, as the company was burdened with depositing a guarantee of about Rs 24,700 crore between September 2024 and February 2025.

After this decision, Vodafone Idea shares jumped by 17% to reach the level of Rs 8.28. However, its shares had declined by 7 percent in the last one month. Vodafone Idea's total liability (including interest) has reached Rs 2.12 lakh crore. This includes spectrum payment of Rs 1.52 lakh crore and AGR (Adjusted Gross Revenue) dues of Rs 70,300 crore.

Vodafone Idea had sought a bank guarantee waiver of Rs 24,700 crore from the Department of Telecommunications (DoT), which has now been approved. Experts believe that Vodafone Idea's ability to raise debt depends on this waiver.

5G rollout and future plans
The company recently added 42,000 new 4G sites, and closed 19,700 3G sites. Vodafone Idea plans to make a capital expenditure (Capex) of Rs 50,000 to Rs 55,000 crore over the next three years. The company aims to launch 5G services in key areas by the fourth quarter of 2025 and reach 4G coverage of 120 crore by September 2025.

Customer migration and tariff impact
Many Vodafone Idea customers had migrated to BSNL due to the tariff hike in July 2024. However, this trend has started changing since August 2024. The company expects the full impact of the tariff hike to be visible in the next two quarters.

Jio and Airtel have reduced their interest expenses by paying spectrum dues in advance. Jio has a bank guarantee obligation of Rs 4,000 crore annually and Airtel has a bank guarantee obligation of Rs 3,000 crore.