Vodafone Idea denies talks with Elon Musk's Starlink; shares dip 5%
02 Jan 2024
In a recent statement, Vodafone Idea, a major Indian telecom operator, clarified that it is not engaged in discussions with Elon Musk’s Starlink for a potential tie-up. The announcement, made on Tuesday, 2 January 2024, followed a surge in the company’s stock over the past two sessions.
The Bombay Stock Exchange, where Vodafone Idea is listed, sought clarification from the telecom giant in response to the volatile market activity. Vodafone Idea promptly addressed the situation, stating that the company is not in any such discussion with the named party and is not aware of the basis of the said news item.
A BusinessWorld report, published on Friday, 29 December 2023, coincided with a notable 21% surge in Vodafone Idea’s stock. The momentum continued on Monday, 1 January 2024, with an additional 6% increase in stock value, witnessing a trading volume of approximately 1.7 billion shares per day, marking the highest in almost two years.
However, following the company’s clarification on Tuesday, 2 January 2024, afternoon, Vodafone Idea’s shares experienced a decline of about 5%, with almost 1 billion shares changing hands.
It’s worth noting that Vodafone, headquartered in the U.K., has previously collaborated with Amazon.com’s Kuiper for internet networks in Europe and Africa. Despite the competition, Kuiper does not operate in the Indian market.
In the domestic telecom sector, Bharti Airtel and Reliance's Jio hold dominant positions, consistently gaining subscribers at the expense of Vodafone Idea, which has been grappling with financial challenges and hasn’t reported a profit since its formation in 2018 through a merger between Vodafone and Aditya Birla Group’s Idea Cellular.
Both Bharti and Reliance also have interests in satellite companies, adding further complexity to the competitive landscape of the Indian telecom industry.
