The government of India recently intervened in Vodafone Idea (VI) due to the struggling telecom industry. It converted VI's outstanding spectrum and AGR dues into equity, making the government the largest shareholder. This will allow VI to raise more debt and fund growth. However, it will only reduce 7% of VI's total Rs. 2.2 trillion debt. The government intervened because it cannot allow the telecom sector to be controlled by just Airtel and Jio. Reforms are still needed, like scrapping AGR fees, so operators can sustain business through market principles with less intervention.