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The UK-based telecom major, Vodafone group, will hold its global board meeting for the second time in the country since its entry into the Indian market in 2007
The UK-based telecom major, Vodafone group, will hold its global board meeting on Sunday in Delhi, the second time in the country since its entry into the Indian telecom market in 2007.
The meeting comes ahead of the Budget and upcoming auction of spectrum in the 800, 900, 1800 and 2100 MHz bands and shows how India is a strategic market for the group.
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The company’s licence in seven circles in the 900 MHz band will come up for renewal in December and Vodafone needs to buy spectrum in this band in the auction starting March 4.
Vodafone executives were tightlipped about the venue of the board meeting, which will be attended by group chief executive Vittorio Colao and all other board members, including seven non-executive directors.
Even senior managers in India were not aware of the details. Vodafone is the second largest mobile services operator in India in terms of subscribers with 178 million users, after Bharti Airtel with 217 million users.
India is a key growth market for the Vodafone group and the local unit is fourth largest contributor to service revenues. A week ago Vodafone India appointed its first Indian CEO, Sunil Sood, to replace Martin Pieters, who has been its chief executive since 2009.
Pieters, the longest serving chief executive officer of a telecom firm in the country, will step down on April 1 and will be succeeded by Sood, currently COO of the company.
Colao is expected to meet the minister for IT and communications next week during his four-day visit to India. He will also launch a coffee table book on women empowerment on Monday, an initiative by Vodafone Foundation.
The government has decided not to appeal against the transfer pricing case it lost to Vodafone in the Bombay High Court. The case relates to a dispute over a tax liability of Rs 3,200 crore arising out of differences in share valuation by the tax authorities and the company. The revenue department had earlier insisted on filing an appeal.
Colao had earlier said Vodafone was incredibly positive about India not only from the business point of view but otherwise too. After Germany, India was a priority market for Vodafone for long-term investments in technology and data, he had said.
Since its entry into the Indian telecom market after acquisition of Hutichson’s stake, Vodafone has invested Rs 60,000 crore here. Vodafone India reported a net profit for the first time last year mainly on the back of growth in data and increased call charges.
