AGR Dues Clarity to Revive Investment Cycle in 4G Network for Indian Telcos

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Supreme Court a few days back announced its decision on the matter of AGR dues. The apex court said that the telcos will have to pay all the remaining dues in the coming decade starting next financial year. Before that, each telco will have to pay the 10% dues in advance so the 90% will be left for the next 10 years. This clarity on the decision of AGR dues case has eased things up for the telecom industry. Now companies and the industry know where they stand and how to proceed from there. This is going to revive the investment cycle in the 4G network for the Indian telcos.

VIL, Jio, and Bharti Airtel to Compete Against Each Other in a Growing Market

Vodafone Idea Limited, Reliance Jio, and Bharti Airtel are going to continue competing against each other in the still growing Indian telecom space. BSNL is yet to arrive with its 4G plans. The network gear makers will now expect a lesser risk in Vodafone Idea Limited defaulting on its payments. VIL has to pay about Rs 50,000 crore in AGR dues.

According to a report from ET Telecom, now with clarity on the AGR dues case, the telcos can resume raising investments. VIL is going to raise Rs 25,000 crore and has confirmed that it is not looking to exit the telecom space any time soon. Edelweiss believes that the rate of tenancy cancellations will drop from the FY21 third quarter.

One of the spokespersons from Nokia said that the company will now be able to look ahead of the AGR dues issue and the Finnish vendor believes that the telecom sector will be one of the major contributors to the economy of the country. But one of the biggest positives that the industry and vendors are going to be relieved about is not worrying about telcos defaulting on their payments. VIL has confirmed its stance with aggressive fundraising that it is seriously looking to grow as a company in the next few years and compete with Jio and Airtel. VIL is going to survive the shock of the AGR dues and that will be a boost for the industry and the economy in the coming time.

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