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BullDigest's May 15 Pre-Market Summary of Vodafone Group Plc

  • 15.05.2025 15:23
  • bulldigest.com
  • Keywords: Pre-Market, Summary, Vodafone Group Plc

Check out BullDigest's May 15 Pre-Market Summary of Vodafone Group Plc. We provide a summary of the key news before the market opens.

Pre-Market SummaryORANYDLR/PL

Estimated market influence

Vodafone Idea (Vi)

Positivesentiment_satisfied
Analyst rating: N/A

Filed a plea with the Supreme Court seeking a waiver of over ₹30,000 crore in Adjusted Gross Revenue (AGR) dues. Launched 5G services and has plans for expansion.

Mukul Rohatgi

Positivesentiment_satisfied
Analyst rating: N/A

Represented Vodafone Idea in the Supreme Court plea.

Orange

Orange

Neutralsentiment_neutral
Analyst rating: Buy

Through MasOrange, is watching closely and could enter the operation to take a key piece of the pie if Movistar acquires part of Vodafone Spain.

Movistar

Positivesentiment_satisfied
Analyst rating: N/A

Leading operator in Spain planning to acquire a significant part of Vodafone Spain.

Digi

Neutralsentiment_neutral
Analyst rating: —

Mentioned as part of the potential redistribution if Movistar acquires part of Vodafone Spain.

Context

Business Insights and Market Implications Summary

Legal Proceedings

  • Vodafone Idea (Vi) has filed a Supreme Court (SC) plea seeking waiver of over ₹30,000 crore in Adjusted Gross Revenue (AGR) dues, including penalties and interest.
  • The SC hearing is scheduled for May 19, 2025.
  • Vi argues the waiver is critical for its survival and to maintain telecom sector competition.
  • The government now holds a 49% stake post-conversion of AGR dues to equity but is restricted from providing direct relief due to prior AGR-related judgments.

5G Rollout and Investment

  • Vi has launched 5G services in Delhi-NCR on May 15, 2025, with plans to expand to all 17 priority circles by August 2025.
  • The company is investing ₹55,000 crore in capital expenditure (capex) for 5G deployment.
  • An introductory offer includes unlimited 5G data on plans starting at ₹299 for 5G-enabled devices.
  • Vi is using 5G Non-Standalone (NSA) architecture and AI-powered network optimization.

Financial Strategy

  • CEO Akshaya Moondra has requested permission from the Department of Telecom (DoT) to convert more AGR spectrum dues into additional government equity.
  • Vi faces challenges in providing a ₹6,091 crore bank guarantee or making a ₹5,493 crore cash payment related to a 2015 spectrum auction shortfall.

Competitive Landscape

  • Movistar, the leading telecom operator in Spain, is reportedly planning to acquire a significant part of Vodafone Spain.
  • Orange (through MasOrange) is closely monitoring the situation and could enter the operation to secure a key market share.
  • If the deal proceeds, the Government would need to review current limits and allow redistribution involving Movistar, MasOrange, and Digi.

Market Implications

  • The outcome of Vi's SC plea and 5G rollout will significantly impact its financial health and competitive position in India's telecom sector.
  • Potential changes in Spain's telecom market could reshape the European competition landscape, with implications for stakeholders like Orange and Digi.