The Vodafone Idea board has approved availing of 4-year moratorium of the adjusted gross revenues (AGR) and the spectrum installment dues but more importantly equity shares will be issued to the government at Rs 10 per share after the confirmation of the Department of Telecom (DoT). Conversion to equity will result in a dilution to all shareholders including promoters and post the conversion, the government will hold around 36 percent stake.

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“This is a good start but it won’t be enough but it does buy the company a lot of time,” said Peter Milliken, Telecom Analyst at Deutsche Bank in an interview with CNBC-TV18.

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He believes that the merger of BSNL, MTNL with Vodafone Idea would be a logical idea.

For the full interview, watch the accompanying video.