Uniformity of rules should be the playbook across sectors. Different rules, whether for telecom players, retail entities or online businesses, would invariably trigger the level-playing questions.
In 2021, the government allowed telcos to convert interest on deferred spectrum payments and AGR dues into equity. This made it the single largest stakeholder in Vodafone Idea.
Govt became shareholder in VI last yr after it approved company’s plans to convert Rs 16,000 cr of interest liability it owed govt into equity. Price of Vodafone stock has risen post FPO.
If successful, FPO is expected to not only increase company’s competitiveness & slow its ongoing loss of market share, but also to significantly reduce risk of a duopoly in the industry.
Centre directed the mobile service provider to convert into equity all the interest related to payments for spectrum and other dues owed to the govt for use of airwaves.
Among the country's three major telecom players, including Bharti Airtel and Jio, the govt package was seen as a bailout for Vodafone Idea, which was on the verge of bankruptcy.
UCBs accounted for 1.8% of total industry credit in September 2025—down from 2.2% five yrs ago—showing that they are losing ground to faster PSU banks.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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