Vodafone Idea refuted recent reports suggesting discussions with Elon Musk's companies, Tesla and SpaceX, for the management of its satellite-based Internet service, Starlink, in India. The telecom provider clarified through an exchange filing, stating, "We would like to submit that the company is not in any such discussion with the named party." Following this clarification, Vodafone Idea's stock experienced a decrease of over 4% to Rs 16.20 on the Bombay Stock Exchange (BSE).
This denial follows a pattern, as in September of the previous year, Vodafone Idea also dismissed speculations regarding discussions about acquisition with Verizon, Amazon, or Starlink. The company asserted that those reports were inaccurate in a regulatory filing.
The recent development occurs against the backdrop of the Telecommunications Bill 2023 being passed in the Rajya Sabha last month through a voice vote, following its approval in the Lok Sabha. The new legislation facilitates spectrum allocation for satellite-based services without the necessity of participating in auctions, a move seen as favorable to companies such as OneWeb, Starlink by Elon Musk, and Amazon's Kuiper.
Despite these external discussions, Vodafone Idea is actively preparing to make substantial investments in the deployment of 5G networks and the expansion of 4G coverage in India. The company's team has diligently worked on the core network for 5G over the past year, positioning itself for advancements in the rapidly evolving telecommunications landscape.
(With Agency Inputs)
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