IMC 2024: Fund raise has kickstarted capex cycle for Voda Idea, says KM Birla

The recent fundraise by Vodafone Idea (Vi) has enabled the company to kickstart again its capital expenditure cycle of around $3.6 billion for equipment from Ericsson, Nokia, and Samsung, said Kumar Mangalam Birla, chairman of the Aditya Birla Group.

Speaking at the inauguration ceremony of the 8th edition of the India Mobile Congress, Birla said that these are key steps that place Vi on a more secure footing and ensure the company remains dynamic and competitive.

Birla said it's Rs 18,0000 crore FPO was the largest of its kind in India and was met with overwhelming enthusiasm, being oversubscribed seven times overall and 19 times among institutional investors, which is a testament to the potential of the Indian telecom sector.

Birla, however, raised the pressing issue of spam calls addressing the gathering which included telecom regulators from around the world.

"One of the most pressing issues being addressed by the Government, Regulator and industry in the past year is spam control and fraud prevention. As the networks have grown, so have the risks to the public, especially from phishing schemes, fraudulent calls, and spam messages," Birla said.

"These undermine public confidence in communication systems and also put people's personal and financial security at risk. In collaboration with the government and regulatory bodies Vi is making significant strides in combatting this menace," Birla added.

Birla said the government's thrust on expanding digital infrastructure and accelerating digital adoption for people and businesses has resulted in the digital transformation moving beyond large businesses to medium and small scale industries, enabling them to break traditional barriers and enter new markets.