Bharti Airtel and Vodafone Idea Appeals Government to Set up Floor Tariff

Published by
Chakri K

Telecom operators have appealed the government to fix the floor tariffs rate by April 1. Also, telecom operators have asked the government to allow a three-year moratorium which would be followed by 15-year payment schedule for AGR dues along with the abolishment of bank guarantees as significant steps which would help the telecom sector to recover from the massive debt burden. According to the letter which was sent by Director General of Cellular operations of India Rajan Mathews to Telecom secretary Anshu Prakash “ Banks are not willing to take a risk in the current situation and are currently requesting telecom operators to reduce their exposures by refusing to issue new bank guarantees or even renew the older bank guarantees.”

Briefly, COAI’s letter appealed that bank guarantees must be abolished to secure license fees payments. In case if it is needed, the amount should be reduced to one-quarter of license fees compared with two quarters now.

Vodafone Idea Appeals DoT to not Invoke Bank Guarantees

Bank Guarantees has been in the limelight as the cash crunch telco Vodafone Idea has appealed the department of telecommunications (DoT) not to invoke bank guarantees as it might lead to fall of the telco giant. So far, Vodafone Idea has only paid Rs 3,500 crore out of its massive Rs 57,000 crore AGR dues. However, the telco giant has self-assessed their AGR dues at Rs 23,000 crore out of which Rs 7,000 crore is the principal amount. The official letter of COAI was sent a day before the meeting of Digital Communications Commission which was scheduled on February 27 to discuss relief measures for stressed telcos. However, the meeting was postponed on February 28.

Vodafone Idea Seeks Tax Refund

In the official letter, COAI has urged the government to set-off goods and service tax credits worth Rs 40,000 crores against AGR dues. Also, Vodafone Idea has appealed to DoT, Niti Ayog and government officials to allow it pay their AGR dues over 15 years after a three-year moratorium. The industry also said that soft loans must be offered at an interest rate of 6% and easy terms.

Chakri K

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Share
Published by
Chakri K

Recent Posts

Realme Techlife Watch SZ100 Budget Smartwatch Launched in India

Realme during its Realme Narzo 50 5G series launch event has introduced a new smartwatch…

Realme Narzo 50 5G Series Launched in India – Specifications and Pricing

Realme has finally launched its Realme Narzo 50 5G series in India on Wednesday. The…

Poco C40 and C40+ Officially Confirmed to be in the Works

The popular smartphone manufacturer Poco is apparently gearing up for the launch of a new…

BSNL Prepaid Plans Under Rs 500 That Are a Steal

The Indian telecom sector is dominated by the three private players – Reliance Jio, Airtel…

Vodafone Idea and C-DoT Sign MoU to Develop and Deploy IoT/M2M Solutions in India

Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, has just announced that…

iPhone 14 Launch Event Date Leaked, More Products to Launch on Same Day

Apple is expected to launch the iPhone 14 series later in September this year. According…

Airtel Performed Way Better than Jio, Vi in Q4 FY22

The financial results for March 2022 quarter are out for all the private telecom operators…

Wi-Fi 6E Routers Add New 6 GHz Band, Should You Upgrade

Wi-Fi 6E routers are the next generation router technology that consumers will get to witness.…

Is 4G Enough for BSNL to Turn Things Over

4G networks from Bharat Sanchar Nigam Limited (BSNL) will be available in multiple parts of…