Vodafone preparing for IPO in India: Colao

“Telecom was a success story but that has been spoilt by deficient service even by global leaders”, the report quoted the minister as having told Colao. It’s linked to the quantity of spectrum that we’ve, it is linked to the convenience of getting permits, proper of the way. “India is clearly one of the five big pillars of Vodafone Group in the world”, Colao said. We are the digital planners.

“I cannot give you a date, I can tell you that we are positively inclined to an IPO, and we have started a few preparatory work”, he said at a press briefing broadcast by TV-18.

On call drops, Mr. Colao said that the issue was linked to the right of ways, the amount of spectrum and other issues on which the company was working with the Department of Telecom. It is not a problem of money, but problem of operating conditions. “If spectrum is priced lower, we can invest more in the country”. It’s vicious cycle – more sites, more issues, more bureaucratic administrative problems, more drops.

Colao also said the company will launch 4G services progressively across India in the months ahead.

Last week, the Bombay High Court ruled in favour of Vodafone in one of a series of tax cases involving the British telecom company in India, a decision seen as positive for several other firms fighting similar disputes.

When it comes to investment, Vodafone has so far spent 800 billion rupees (€10.8 billion) in India since its 2007 acquisition of Hutchison Essar, and its annual capex now stands at INR85 billion.

“Thanks to competitors, the worth of know-how is coming down yearly”. The share sale will also offer investors an opportunity to reap dividends from a market where wireless growth is outpacing that of more mature countries such as Vodafone s home market, the United Kingdom. “I would say it is a good start”, Colao said while adding that spectrum sharing and trading will help telecom operators in providing efficient services.

“I was in Gujarat around January-February when the Prime Minister elaborated his vision for Digital India…” Speaking to the media, he said the Indian government needs to decide if it wants to follow a revenue maximisation policy from spectrum auctions or keep airwaves affordable to allow telcos to invest more in the long term, which will improve call quality and facilitate Digital India.

“Net Neutrality should be about non-discrimination”.