British Telecom Company Vodafone Plc. who’s India Operations; Vodafone India Ltd., is doing quite well, is planning to put in its largest investment till date amounting to US$ 3 Billion, within the Indian sub–continent and that too, to improve rural connectivity.
Vodafone India, seems to have everything going well for itself, despite the Rs. 11,200 Crores Tax Dispute, it seems to have gotten involved in. In connection to the same, Vittorio Colao, CEO Vodafone, met Finance Minister P Chidambaram and the talks seem to have gone well, he indicated but his official comment was,
“I am grateful to the finance minister for giving me time. It is good to have a dialogue between an enterprise and the policymaker.”
The company is facing a tax liability of Rs 11,200 Crores on its 2007 acquisition of Hong-Kong-based Hutchison Whampoa’s stake in India’s Telco, Hutchison Essar. But this is the sole bone of contention for the company.
Why is Vodafone willing to put up such an amount within the Indian Market? For Vodafone; India and Germany are the two most important markets, but India is top priority, commented Colao, “The priority for us is India, followed by data in India and then data in the rest of the world.” He added that the Corporate Sector is of particular interest to the company since it is showing healthy signs of growth and adoption of Data Intensive Services like Cloud Technologies, Data Centers and such. But we all know, Vodafone is highly interested in the vast rural regions.
The Indian Government’s Foreign Investment Promotion Board has even approved Vodafone’s intention of raising stake in its Indian arm to 100%. The company has even received complete clarity about Spectrum Usage and associated Charges too.
With Indians eagerly subscribing to Data and consuming content on their mobile, it is a very right time for telecom companies to pull out all stops and engage in improving their services and infrastructure, to offer seamless high–speed connectivity at just the right price. What do you think?