Breaking News

header ads

Vodafone and idea may shut down

Recently Vodafone users started complaining about network issues and call drop, and the reason behind it indicates toward the shutting down of the company which is a big decision for any company, if we go deeper in situations it will be a long story but talking about the complete situation, in short, here it is

what was the matter?
The reason behind it is the Adjusted Gross Revenue (AGR) in which company has to pay part of its income as Tax to the government, and Vodafone has to pay $500 billion tax to the government and the same condition is with the idea also which may lead idea too towards closure.

Vodafone-logo
Vodafone-logo 
 What Vodafone say?
Vodafone is ready to pay tax but the clash is that Vodafone says government to charge tax on their income, but according to the government they have to pay the charge on all their assets and every source of income (including interest on money) which is equivalent to $500 billion and to pay this amount Vodafone is set to shut down its business in India Permanently

Vodafone situation.
Since last few years Vodafone faced a huge loss of $2,000 billion due to entrance of jio in telecom market, talking about last quarter Vodafone losses profit by $500 billion and this is the biggest loss to any telecom company till now and even government is not accepting money in part they want whole tax at once which leads Vodafone towards their closure and same is the situation with idea.

What are the losses?
If Vodafone shuts down there will be a direct impact on the economy, more than 50,000 workers will be jobless which is a great loss considering the current employment situation of India.
300 million users will have to face difficulty to port their number to other operators, as the userbase is huge then porting number will take time
And the biggest loss is there will be no competition in the telecom market, which will lead to monopoly, for providing good products at cheap rate there must be minimum three companies in any sector, If competition is less it leads to monopoly

Post a Comment

0 Comments