DFC-Vodafone Idea Deal Hits Deadlock

16 Jan 2024 , 12:41 PM

The Department of Telecommunications has observed that, despite the telco’s claims four months ago, Vodafone Idea has not been able to close a funding from the US International Development Finance Corporation (DFC) for the deployment of Open-RAN and related technologies.

With a 33.1% stake, the government is the carrier’s largest shareholder despite its financial difficulties.

‘Vi had reported verbally that it is in discussions with US International Development Finance Corporation (DFC) for funding Open-RAN & related technologies, but no progress has been reported even after lapse of four months,’ the Department of Transportation (DoT) stated in a private report regarding Vi.

The US government’s development financing organization, the DFC, makes investments across a range of industries, including vital infrastructure, technology, energy, and healthcare. In order to finance solutions to important problems facing the developing world, it also collaborates with the private sector.

The corporation has previously requested postponed payments from the government.

Telcos currently pay the government 8% of their AGR in license fees. Vi’s expected quarterly SUC payout is less than 1% of AGR, down from 3-4% previously, as a result of the DoT ceasing to impose this mandatory fee on airwaves purchased starting with the July 2022 5G auction.

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