Trai Might Help Vodafone Idea and Bharti Airtel In Improving Their Financial Situation

In a situation of distress where the older telecom companies in India, Vodafone Idea and Bharti Airtel are under massive financial pressure and are surrounded by dues and debts, some of the steps which are to be brought forth by the Telecom Regulatory Authority of India (Trai) might help these telcos in climbing back to sustainable levels. As per a new ET report, some of the steps that Trai is going to execute in the industry include the deferment of the zero-IUC regime wherein the telecom operators will be required to pay the Interconnect Usage Charges for the calls that they carry on their network for other operators. Also, the Trai is ideating on the floor pricing for the telecom industry, which if comes into play, will increase the revenue of the telecom operators. This could be the much needed holy grail which the incumbent telecom operators, Bharti Airtel and Vodafone Idea currently need to bring their financials to the sustainable levels.

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Trai to Help Telecom Industry With Regulatory Measures

The worst thing that has happened with these older telecom operators right now is the Adjusted Gross Revenue (AGR) issue, on which the apex court in India passed a verdict following a decade and a half legal row. After this verdict, telecom operators Bharti Airtel and Vodafone Idea are the worst hit ones. Vodafone Idea has dues worth Rs 53,000 crore which it has to pay to the Department of Telecommunications (DoT) and similarly, Bharti Airtel has to pay dues worth Rs 35,500 crore to the DoT on the same lines. These dues are made up by the license fees, spectrum usage charges, interests, penalties and the interests on these penalties. However, there are a few steps that could ease the stress for these telecom companies.