Once hailed as a telecom titan, Vodafone Idea is now hanging by a thread. The company has issued a dire warning: without more government support, it may not survive beyond FY26. This isn't just a corporate crisis—it's a moment of reckoning for India’s telecom sector.
The Rise: A Merger Born Out of Desperation
Back in 2018, Vodafone India and Idea Cellular joined forces in a $23 billion merger. Together, they created India’s largest telecom operator with over 400 million subscribers. But the merger wasn’t strategic—it was reactive.
In 2016, Reliance Jio entered the scene with free 4G data and ultra-cheap tariffs. ₹149 for 1GB per day and unlimited calls? A revolution. Jio’s pricing war disrupted the industry, forcing Vodafone and Idea to combine just to survive.
The AGR Bombshell
The real shock came in 2019 when the Supreme Court ordered Vi to pay ₹58,000 crore in Adjusted Gross Revenue dues. That verdict sent the company spiraling. By 2023, its debt ballooned to ₹2.1 lakh crore.
A Saviour That Wasn’t Enough
The Indian government converted ₹16,000 crore of interest dues into equity, taking a 49% stake in Vi. But even that lifeline couldn’t reverse the decline. Vi continued bleeding customers and losing ground in the 5G race.
Denied, Again and Again In March 2025, Vi requested to surrender unused spectrum to ease its bank guarantee obligations. Denied. In May, the Supreme Court rejected its ₹45,000 crore relief plea—its final hope.
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The Fall in Numbers Vi’s stock has plummeted over 35% since its FPO price of ₹11, and it’s down over 65% from its 2024 peak of ₹19.18.
The Bigger Picture
Vi’s fall is not just its own tragedy. It poses a deeper question: can India maintain a competitive telecom market, or is it slipping into a duopoly controlled by Jio and Airtel?
