AGR Relief to Vodafone Idea Sparks Similar Demands from ISPs, Non-Telcos

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AGR Relief to Vodafone Idea Sparks Similar Demands from ISPs, Non-Telcos: Report
Relief granted by the government to Vodafone Idea (Vi) on its adjusted gross revenue (AGR) dues has triggered fresh demands for similar support from hundreds of standalone internet service providers (ISPs) and other non-telecom firms burdened with large AGR liabilities, according to an Economic Times report by Kiran Rathee dated January 4, 2026.

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Also Read: Vodafone Idea Gets 10-Year Breather on Over 95 Percent of AGR Dues

Vi Relief Rekindles Long-Standing AGR Dispute

These companies have been facing demands running into thousands of crores following the Supreme Court’s 2019 ruling that broadened the definition of AGR, prompting the Department of Telecommunications (DoT) to raise dues not only on telcos but also on ISPs, VSAT operators, and several public sector entities.

ISPs Seek Parity as Financial Pressure Mounts

“Many of the smaller firms are struggling financially due to intense competition, not only from contemporaries but also from big telecom firms,” Rajesh Chharia, president of the Internet Service Providers Association of India (ISPAI), was quoted as saying. “The ISPs, too, are saddled with thousands of crores of AGR dues and a similar relief or waiver should also be given to these firms,” he reportedly added.

On Wednesday, the Union Cabinet approved a relief package for Vodafone Idea, granting the telco a 10-year moratorium on the payment of over 95 percent of its AGR dues. The dues up to FY17 have been frozen at Rs 87,695 crore as of December 31, 2025, and a committee will reassess the liabilities.

“The government giving relief to Vi gives hope to thousands of standalone ISPs, who are eagerly waiting for implementing DCC (Digital Communications Commission)-approved policy of making fixed line broadband services free from 8 percent licence fees on revenue for 10 years,” Chharia reportedly said.

ISPAI represents more than 100 ISPs, including Sify, Tikona, Tata Communications, Powergrid, Tata Sky, Connect Broadband, Netmagic and Excitel.

DoT Maintains Relief Is Company-Specific

DoT officials, however, stressed that other companies seeking similar relief must get the top court’s nod for the same. “The package to Vi has been given following the top court order, which specifically asked that the order applies to the company only,” one official was quoted as saying.

According to the report, industry players argue that the scale of AGR liabilities across telecom and non-telecom sectors raises larger policy questions.

The issue has broader implications for the sector. Non-telecom firms are estimated to owe over Rs 82,000 crore in AGR dues. Initial DoT demands on non-telcos had exceeded Rs 4 lakh crore, though nearly 96 percent of the dues were later withdrawn for some state-run entities such as ONGC, GAIL and PowerGrid, prompting other firms to seek similar treatment through legal channels.

Also Read: Govt May Exit Vodafone Idea After Relief Package, Stake Sale in Works

Broader Policy Questions Loom Over Telecom Sector

Bharti Airtel, which is scheduled to pay more than Rs 42,000 crore in AGR dues starting next fiscal, has indicated it will approach the DoT for reassessment following the Supreme Court’s permission for a comprehensive reconciliation of liabilities, including interest and penalties. However, the company has not yet formally sought relief.

So far, Vodafone Idea remains the only private company to receive such government support. Chharia reportedly noted ISPs form the backbone of the country’s broadband infrastructure, particularly in rural India.

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