Vodafone Idea Likely to Survive if Government Allows to Pay AGR Dues Over 15 Years

Vodafone Idea has just cleared their self-assessed principal amount of Rs 6,854 crore from the massive amount of Rs 58,254 crore

Highlights
  • Vodafone Idea will have to pay Rs 5,200 crore in annual AGR pay
  • The government will face trouble as Vodafone Idea owes Rs 1.3 lakh crore
  • Government is planning to reduce license fees along with spectrum usage charge

Vodafone Idea is facing massive financial distress as the telco giant has to pay Rs 58,254 crore towards AGR dues to the government. However, the Supreme Court might allow the deferred payment mechanism, which would allow the stressed telco to clear their AGR dues in a period of 15 or 20 years. However, as per the analysts, the telco giant might lose its financial credibility as they will have to pay approximately Rs 5,200 crore in the annual pay. Similarly, Bharti Airtel will also face distress as the self-assessed AGR dues of the telco giant is approximately three times lower than DoT.

Government Will Face Trouble if Vodafone Idea Exits

The analysts also marked that the government will face financial distress if Vodafone Idea shuts down as the telco approximately owes a massive debt of Rs 1.3 lakh crore. Even if Vodafone Idea survived the AGR crisis, the telecom operator would have to increase their Average ARPU by approximately 40%.

Not only this, to directly compete with Reliance Jio and Bharti Airtel, but Vodafone Idea will also have to invest roughly $ 1.15 billion annually to expand their 4G network operations. Sanjay Kapoor, who is the ex-CEO of Bharti Airtel marked that Bharti Airtel will clear AGR dues as its balance sheet allows it. However, Vodafone Idea will face trouble clearing off their AGR dues as the amount if three times more than Bharti Airtel.

Telcos Appeal Government for Relief Measures

Vodafone Idea appealed the government to provide relief measures as it would help the telco giant to survive the cash-crunch situation. The government is planning to give GST refunds of Rs 8,000 crore to telco giant and settle it towards AGR dues. Not only this, but the government is also planning to reduce the license fees along with spectrum usage charge (SUC).

As after the Supreme Court verdict, Vodafone Idea has to pay Rs 58,254 crore towards AGR dues. Whereas, Bharti Airtel has to pay Rs 43,980 crore towards AGR dues. However, Vodafone Idea has just cleared its self-assessed principal amount of Rs 6,854 crore, and Bharti Airtel has cleared its self-assessed AGR amount of Rs 18,004 crore.

Read more on:

28
Leave a Reply

avatar
Photo and Image Files
 
 
 
9 Comment threads
19 Thread replies
1 Followers
 
Most reacted comment
Hottest comment thread
12 Comment authors
Sujay GSRakeshBhaskarmaxSantosh Kumar pal Recent comment authors
newest oldest most voted
Sujay GS
Sujay GS

@ Rakesh Rakesh Bhai In KTK , Vodafone IN 4G & 3G SIM’s Latch On The Same Network As Usual With Data Speed Variations. Idea 4G SIM’s Latch On Both Idea & Vodafone IN Networks. Idea 3G SIM’s Latch On Vodafone IN Network . Both Vodafone IN & Idea 2G Sims Latch On Idea Network @ My Location In KTK Telecom Circle. Vodafone IN 4G Runs On Band 3 (1800 Mhz) In Most Regions Of KTK Circle & In Bengaluru , Mangaluru , Mysuru Like Metro Cities Runs On Band 3 (1800 Mhz) & Also LTE – 900 Mhz On… Read more »

City
KARNATAKA , INDIA
Operator
VodafoneIdea Ltd , Reliance Jio Infocomm
DTH
NXT Digital
3G Networks KTK_30_03_2020.png
4G Networks KTK_30_03_2020.png
Sujay GS
Sujay GS

@ Rakesh Thanks For The Suggestion Rakesh Bhai. And Next Is , This Quantity & Quality Of Data Speeds Are Achieved ONLY Coz Of Network Integration Completion @ Ur Location By VIL , Otherwise Nobody Gets Such Speeds When In 4G Data Traffic Bro !! For Instance Just Check Speeds Between 8:30 PM – 10 PM . U Will Get To Know The Real Data Speeds Of VIL & Plz Share The Screenshots With Us @ TelecomTalk. And In Case Of BSNL Karnataka , 4G Services Are ONLY Available @ Select Locations i.e Mangaluru , Bidar , Gulbarga , Raichur… Read more »

City
KARNATAKA , INDIA
Operator
VodafoneIdea Ltd. , Reliance Jio Infocomm
Rakesh
Rakesh

Hi, as per your suggested timings here its 1st picture from Ground floor test & 2nd picture from 1st floor test & Idea-Vodafone BSNLCellOne & airtel should compulsarily survive in telecom otherwise Jio will not give chance to common man to make a single call Jio will abnormally increase the rates.

Screenshot_20200325-204110.png
Screenshot_20200325-204637.png
Rakesh
Rakesh

In KTK currently which network is available Vodafone IN or IDEA? Kindly share a list of network screen shot in manual mode.

Recent Posts

Vodafone Idea Rs 251 Data Voucher to Come With 28 Days Validity

Vodafone Idea has introduced a new Rs 251 data voucher. Work from home has become a new normal for people...

Bharti Airtel Rs 251 Prepaid Data Pack is Now Available for Recharge via Official Channels

Airtel had recently introduced similar data vouchers as of Reliance Jio. One of its plans came for Rs 251 which...

Bharti Airtel: Making Strides Across Services and Emerging Stronger When It Matters

In Q42020, Airtel’s mobile revenue growth outstripped Jio’s by a huge margin (quarter on quarter increase of 15%, 2X Jio)...