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Vodafone Idea Plans to Sell Fiber Broadband Business for Raising Money

Vodafone Idea Plans to Sell Fiber Broadband Business for Raising Money
The Siliconreview
05 July, 2021

Vodafone Idea (Vi) has begun revamping the broadband plans offered to users in various countries. However, according to recent reports, the telco is planning to raise $1 billion by selling its assets, including the fixed-line broadband business, data centers business, and its optic fiber unit. Since the telecom's cash flow is in a severe condition, the company has come to this decision.

The company has a ton of debt on its shoulders. Its peculiar cash crunch situation can only be solved through more cash. Besides, Vi will need cash so that it can keep investing in its networks, especially in the 5G spectrum sector. Vodafone Idea is now planning to sell its most prominent fixed-line broadband business along with other major business units to solve the cash issue.

The telecom company has said that it will seek help from different governments. Suppose it could get some relief from the government to pay it the spectrum dues later. In that case, it will focus more on improving network services rapidly, which might mean new users for the telco in the short term, thereby improving its revenue.