New Delhi, July 2, 2025 — Communications Minister Jyotiraditya Scindia on Tuesday dismissed speculation over a potential public sector status for Vodafone Idea (Vi), asserting that the government has no plans to raise its equity stake in the telecom firm beyond the 49 percent threshold. Speaking to CNBC-TV18, Scindia underscored that while equity conversion remains a legal right available to all operators, any further stake increase must undergo scrutiny by the Department of Telecommunications (DoT) and the Finance Ministry. The clarification comes amid renewed discussions around the viability of state support for the financially stressed telco.
Highlights
Government has no plans to make Vodafone Idea a public sector unit.
Equity conversion beyond 49% ruled out; approval lies with DoT and Finance Ministry.
All telcos have the right to seek equity conversion under existing policies.
Bharti Airtel’s pending request also awaits official evaluation.
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Concerns Rise Over Market Concentration and Sectoral Competition
Scindia further addressed concerns regarding reduced competition in India’s telecom market, expressing discomfort with the possibility of a sectoral duopoly. He emphasized that a vibrant, multi-player ecosystem is essential for consumer welfare and industry innovation. Highlighting the limited number of countries with four or more mobile telecom players, the minister pointed to India’s capex-led telecom growth as globally unmatched. While affirming that telecom operators are free to define their own financial roadmaps, he maintained that the government can only offer strategic guidance rather than operational intervention.
Highlights
Scindia warns against reduced telecom competition and duopolistic trends.
India stands out globally for telecom capital expenditure returns.
Government’s role limited to advisory support, not directive control.
Multi-player telecom landscape seen as essential for sector health.
Satellite Communication Spectrum to Follow Shared Pricing Model
Addressing the evolving framework around satellite communication, Scindia noted that spectrum for satcomm services should be priced distinctly from terrestrial spectrum due to its shared nature. He assured that the Telecom Regulatory Authority of India (TRAI) had conducted multiple consultations before finalizing its recommendations on the subject. The approval process for these recommendations, he added, typically takes a few months but is progressing in line with procedural norms. The minister conveyed confidence in TRAI’s stakeholder-inclusive approach.
Highlights
Satellite communication spectrum won’t follow dedicated pricing models.
TRAI recommendations based on detailed stakeholder feedback.
Final approval process may take a few more months.
Shared-spectrum approach adopted to align with global best practices.
