Vodafone AGR Case Will Impact Connected Cars In India

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The Vodafone case in the Supreme Court related to the Adjusted Gross Revenue (AGR) dues will have some dramatic consequences for the Indian connected car market. Vodafone had indicated that the Supreme Court didn’t grant a minimum time of 15 years to pay off its debt, consequently, it would face the possibility of shutting down in India. The Supreme Court in its judgement gave it just 10 years which means that any connected car which is based on Vodafone embedded SIM in India would face the possibility of losing connectivity in case Vodafone-Idea filed for bankruptcy. 

While this is happening, reports have emerged that the beleaguered telco is in talks with Amazon and Verizon for a $4 billion investment which could put all of these concerns to rest.

“Yes, makes total sense,” says Sanchit Vir Gogia, Chief Analyst and Founder, Greyhound Research. 

In fact, Gogia adds, this may actually supercharge Vodafone-Idea’s business in India as it was stuck because of the delays in the Supreme Court ruling. 

“I don’t believe Vodafone-Idea is going away. It is a robust business. In fact, because of the indecisiveness of the Supreme Court, Vodafone-Idea couldn’t attract investors. I now believe they will attract some good investors which will make sure it stays on,” he said.0Comments

“Even on a contractual level, I believe the automotive OEMs will have the ability to transition their customers to another network,” he added allaying any concerns consumers may have.


<strong>Analyst: Sanchit Vir Gogia</strong>
Analyst: Sanchit Vir Gogia

Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Digital & Technology Research & Advisory firm.

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