Vodafone Idea, or VI, is one of the three main private companies in the ever-competitive telecom business in India. However, it does not command the same status as its two rivals, Reliance Jio and Airtel.

The Bank Guarantee Waiver

Amid the exodus of subscribers from its services and investors from its shares, a tranche of good news came to pass for the company, that today is partly owned by the government of India.

The Union Cabinet agreed to waive off bank guarantee requirements for deferred spectrum payments. This has benefitted VI more than any other telecom company in the market. The moratorium on spectrum auction dues for Vodafone Idea is set to end in October 2025.

This development has bolstered their prospects at the equity markets. The company stocks zoomed significantly during the trading session on Tuesday, November 26.

The phenomenon appears to have picked up, from where it had left, as the company shares continued to zoom on Wednesday as well.

In the past 5 trading sessions, the VI shares have surged in value by a mammoth 10.23 per cent.

At the time of writing, Vodafone Idea shares, listed as Idea on the NSE jumped by another 1.73 per cent or Rs 0.13. This took the overall value of the telecom company shares to Rs 7.65 per piece.

The Telecom World

When we look at the larger telecom market, it currently could be deemed as a oligopolistic market, as three private sector companies hold over 92 per cent of the market share, with other players, including government companies getting the shortest end of the stick.

While Mukesh Ambani's Jio holds a colossal 40 per cent of the market, it is closely followed by Airtel, with just over 32 per cent of the market.

Meanwhile, the third-placed Vodafone Idea has just 18 per cent of the market, with its subscription rate searching for new low points. Currently, the government of India owns over 23 per cent of the company.