• India tax case – Litigation is common in telecom industry, but the notorious Vodafone tax case has kept the operator worried. The dispute arose from Vodafone’s buyout of Hutchison’s India operations in 2007, a transaction not subject to tax in India. But the nation’s government thinks otherwise. Despite India’s top court ruling in Vodafone’s favor, the government changed the laws and the matter is still out for international arbitration. Vodafone’s liability could be as much as $3.3 billion if it loses.
Irrespective of weaknesses and threats, Vodafone’s business is in no imminent danger. It is a well-managed company that will survive the headwinds. The Verizon stake sale has immensely helped in strengthening the operator’s finances and that money is being invested efficiently in other ventures. There have been rumors of AT&T’s potential interest in Vodafone. Unless such an unlikely deal happens, the Vodafone brand is here to stay and it will remain one of the superior telecommunication companies of the world.