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Airtel, Vodafone Idea in crisis, know the whole matter, what will be the effect on common man

NS News

Airtel, Vodafone Idea,: The harsh approach of the Supreme Court in the case of adjusted gross revenue or adjusted gross revenue (AGR dues) can have a profound impact on the telecom sector. The risk of this has increased compared to the earlier that only two companies remain in this important sector. The Supreme Court on Friday took a very tough stand as the order to pay AGR dues was not implemented. This has especially aggravated the situation for companies like Vodafone Idea. At least this is what an analyst believes. The CEO of Vodafone Group plc has already stated that if his Indian unit does not get relief in case of AGR, operations will become difficult. <! –

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This is why bad news for the telecom industry

Mahesh Uppal, director of consultancy firm Com First, said, "There is no doubt that this is bad news for the telecom industry." This has particularly weakened the position of Vodafone Idea. ' He said that the risk of surviving only two companies in the telecom sector is greater than before. Currently, in the telecom sector, apart from government companies BSNL and MTNL, three private sector companies are Bharti Airtel, Vodafone Idea and Reliance Jio. Uppal said that companies have little scope for any solution, but if the government considers it a long-term problem then it can consider a change in policy.

Most outstanding on Vodafone Idea

  • Vodafone Idea: Highest 28,309 crore license fees, 24,729 crore remaining of SUC
  • Bharti Airtel: 21,882 crores of license fees and 13,904 crores of SUC
  • Tata Teleservices: License fees of Rs 9,987 crore and SUC's liability of Rs 3,836 crore
  • Reliance Jio: The only company that paid its dues of Rs 60 crore.

Jio, Bharti Airtel won't have problems

According to the order of the Supreme Court, now Vodafone Idea and Bharti Airtel will have to pay 92 thousand crore rupees to the government by March 17. In a report, Equinomics founder and MD G.K. Chokkalingam said, 'Bharti Airtel and Reliance Jio will not face any problem. But, Vodafone Idea will have to struggle a lot to stay in the market. If they want to continue operating, a huge amount will have to be arranged. In such a situation, the competition in the telecom market will be limited mainly between two companies. Chokkalingam said that there are many countries where there are only two companies, but the population there is not as large as India. In this context, the government has to think on whether such a situation will prove to be good for our country.

DOT withdrew order

The Department of Telecommunications (DoT) has withdrawn the order following a scathing comment made by the Supreme Court on Friday, stating that if the telecom companies do not pay the AGR dues on time, then there is no concrete action against them Will. Along with this, the regional offices have been ordered to take immediate necessary action to ensure compliance of the Supreme Court's October decision.

Know what happened when

– The Supreme Court on October 24 last year, after a 14-year court battle, justifying the DOT's definition of AGR, to 15 telecom companies including Bharti Airtel and Vodafone as license fee and spectrum usage charge of Rs 1.47 lakh crore The balance amount was ordered to be paid by 23 January.

Bharti Airtel and Vodafone filed a review petition against this court order, which was rejected by the court in January

– The deadline for telecom companies to pay arrears expired on 23 January, but on the same day a DoT official issued a letter ordering no punitive action against the companies not paying the arrears.

– On February 14, the Supreme Court lashed out at the DoT official and telecom companies over the letter of a DOT official in the outstanding liability case. On the lax attitude of the telecom companies and the Department of Telecommunications (DoT), the Supreme Court even said that if its orders are contempted in this way and it seems that there is no law in the country, then the court should be closed.

– Bharti Airtel announced to give 10 thousand crore rupees within a week, there was no response from other companies.

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