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<ul><li>Reliance <keyword id="2003276" type="General" weightage="80" keywordseo="jio" source="Orion">Jio</keyword> and Bharti <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> are waiting it out and getting their users hooked onto 5G before hiking tariffs. </li><li>Elevated subscriber churn has also acted as a barrier against <keyword id="891186" type="General" weightage="20" keywordseo="tariff-hikes" source="Orion">tariff hikes</keyword>, according to analysts. </li><li>Enhancing 5G utilization also lets Jio and Airtel grab market share from <keyword id="1553175" type="General" weightage="80" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>, which is yet to launch its 5G services. </li></ul>There is a broad consensus amongst both telecom companies’ management and analysts that the sector needs another round of tariff hikes, but <keyword id="6383126" type="General" weightage="100" keywordseo="telcos" source="Orion">telcos</keyword> seem shy of blinking first this time around amidst a rise in subscriber churn. While analysts have noted multiple times that tariff hikes are imminent, telecom companies are yet to bite the bullet. Bharti Airtel, the second largest telco, had said in Q2 that there is a<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-reports-89-yoy-increase-in-q2-net-profit-to-2145-crore/articleshow/95207348.cms"> “need for tariff correction”</a>, while Vodafone Idea said during its Q1 investor call that a<a href="https://www.businessinsider.in/business/telecom/news/vi-betting-on-tariff-hike-as-it-lost-over-10-million-every-day-in-q1-fy23/articleshow/93348828.cms"> tariff hike is necessary</a> before the end of 2022. Curiously enough, neither telco touched upon tariff hikes in their respective Q3 earnings. Global brokerage Jefferies had noted that it expects Bharti Airtel and Reliance Jio to hike tariffs by 10% each in Q4 of FY23, FY24 and FY25. So far, however, tariff hikes have not materialized and telcos don’t seem to be in any major rush going by the lack of commentary in this regard in their latest earning calls. <cmsannotation type="cmsannotation" annotationid="Telcos want to get users hooked onto 5G" comment="subhead" text="Telcos want to get users hooked onto 5G">Telcos want to get users hooked onto 5G</cmsannotation> The high cost associated with the acquisition of 5G spectrum and the rollout of 5G services means that tariff hikes remain a key trigger for telecom companies. However, for now, Airtel and Jio are focusing on expanding the availability of their 5G networks and getting users hooked onto the higher data speeds before hiking tariffs. According to the analysts Jefferies, Jio and Airtel are also grabbing market share at the expense of Vodafone Idea, which is struggling to roll out its 5G services due to a fund crunch. “We believe there is greater uncertainty on tariff hikes in the near term given that large capacity creation with 5G will shift focus on boosting utilization. Moreover, focus on market share will rise amidst moderating data subscriber growth and Vodafone Idea’s worsening situation,” said a Jefferies report. <div type="image" title="Telecom market share April-Dec 2Jan-22_31.13_35.49_23.15 Feb-22_31.37_35.28_23.09 Mar-22_31.55_35.37_22.83 Apr-22_31.61_35.5_22.68 May-22_31.62_35.69_22.56 Jun-22_31.63_36_22.37 Jul-22_31.66_36.23_22.22 Aug-22_31.." msid="98123501" hostid="261" sizebytes="30376" caption="&amp;lt;p&amp;gt;Telecom market share FY23&amp;lt;/p&amp;gt;"></div> Telcos are also wary of the elevated subscriber churn, and a tariff hike at this point could worsen it. “We are not baking in any tariff hikes at all in the calendar year 2023. We believe it will be difficult for operators to do another 20% hike, as subscribers found it difficult to absorb the last 20% hikes, leading to heightened churn,” JP Morgan said in a note. However, analysts at Jefferies were relatively less bearish on the prospect of tariff hikes, saying that we could see one round of hikes by March 2023. Going forward, the brokerage believes that telcos could resort to hiking 4G tariffs and driving up usage of 5G services by offering larger data bundles at a lower cost per GB. “While 5G is unlikely to drive up ARPUs without tariff hikes, it will help Bharti Airtel and Reliance Jio gain market share from Vodafone Idea," JP Morgan added. For context, Reliance Jio’s 5G services are available in 277 cities across the country, while Airtel’s 5G services are available in 133 cities. Vodafone Idea, on the other hand, is yet to officially roll out its 5G services. Going forward, the direction telcos choose in monetising 5G will be key in determining the timing and quantum of tariff hikes. <cmsannotation type="cmsannotation" annotationid="Lack of tariff hikes results in marginal uptick in ARPU" comment="subhead" text="Lack of tariff hikes results in marginal uptick in ARPU">Lack of tariff hikes results in marginal uptick in ARPU</cmsannotation> The lack of tariff hikes has also resulted in only a marginal uptick in the average revenue per user (ARPU) of the three telcos. While Jio’s ARPU <a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-net-profit-up-3-2-sequentially-at-4881-crore-in-q3-on-better-subscriber-mix/articleshow/97179677.cms">increased 1.8%</a> sequentially, Vodafone Idea <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-q3-net-loss-widens-to-7990-crore-average-revenue-per-user-edges-up-to-135/articleshow/97939836.cms">reported</a> a 3% increase. Airtel, on the other hand, <a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms">reported</a> a 1.6% increase due to premiumisation. The increase in 4G usage also helped Jio and Airtel post a moderate uptick in their revenue – while Jio’s revenue increased marginally by 2.4% sequentially in Q3, Airtel reported a 3.7% topline growth. According to the analysts at JM Financial, this revenue uptick was due to an increase in 4G subscribers – while Jio’s subscriber base grew by 4.55 million, Airtel reported an increase of 3.39 million during the December quarter. Vodafone Idea, on the other hand, reported a decline of 7.81 million subscribers during this period. However, the analysts at Jefferies believe that the government picking up a 33% stake in Vodafone Idea has improved the outlook for tariff hikes in the longer term. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/indian-banks-dream-run-could-soon-be-over-as-deposit-rates-start-catching-up-to-lending-rates/articleshow/98117219.cms">Indian banks’ dream run could soon be over as deposit rates start catching up to lending rates</a> <a href="https://www.businessinsider.in/tech/news/microsoft-bing-chatgpt-gives-death-threats-tries-to-break-a-marriage-and-more/articleshow/98091746.cms">Skynet, anyone? Microsoft’s Bing AI gives death threats, tries to break a marriage and more</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-stocks-meltdown-continues-on-monday/articleshow/98084715.cms">Adani group stocks meltdown continues on Monday – Adani Enterprises sees the biggest decline</a>

Wary of churn, telcos want to get users hooked onto 5G before hiking tariffs

What if Vodafone Idea dies?

Vodafone Idea News - Only cash can save Vodafone Idea from a slow death

<ul><li>Shares of Vodafone Idea have spiked nearly 18% in the last two days on hopes of a bailout from the government.</li><li>There were three demands made by the company’s billionaire promoter Kumar Mangalam Birla.</li><li>According to experts, the most viable option at this stage is to put a floor price on tariff, one that would apply to all three major players including Bharti Airtel and Reliance Jio.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/">Business Insider</a>.</li></ul>Vodafone Idea and its management have been sending out SOS to the government. The market seems to believe that a rescue package may be coming after promoter Kumar Mangalam Birla has written to the Prime Minister Narendra Modi and met the newly-appointed Minister for Communications, Ashwani Vaishnaw. The shares of Vodafone Idea surged over 10% on September 2 and another 7% yet again today (Sept. 3). The most viable option, according to experts, at this stage, is to have a floor price for telecom services for all operators including Bharti Airtel and Reliance Jio. Floor price refers to a minimum price for voice and data services, which means telecom operators will not be able to offer rates lower than the floor price. <div type="image" title="Vodafone Idea 01_04_21 to 03_09_21." msid="85890408" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price over the last two months&amp;lt;/p&amp;gt;"></div> The market seems to believe that Vodafone Idea may be rescued but experts believe it may be easier said than done. There were 3 demands from Birla, in his letter to the Prime Minister dated June 7: to reduce the payment of regulatory dues after the Supreme Court allowed the recalculation of revenue in earlier years (also called adjusted gross revenue or AGR), to defer payment for spectrum licences, and to set a minimum level of tariffs for mobile phone operators. Sanjay Kapoor, the former chief executive officer of Bharti Airtel, believes if Vodafone Idea gets any of these measures as a bail out, others, including Reliance Jio, will also demand the same and it will only be fair. <div type="Video" msid="85894226" hostid="261" title="How to read Kumar Mangalam Birla’s letter to the government" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=85894226"></div> “I think it will be parochial to read Mr. Birla's letter as wanting to sell his stake. I think it is metaphoric and symbolic in nature,” Kapoor said, explaining that Birla underlined his concerns with the Indian telecom industry slipping back to a duopoly, and that his company and Vodafone Plc., haven’t been able to generate returns out of their multi-billion dollar investment in the telco. On the other hand, R Chandrashekhar, former secretary, Telecom and information technology (IT), told Business Insider that not all of these requests are viable. Like Kapoor, Chandrashekhar also said that the moratorium on spectrum payments would require changing the terms agreed to by the operators, and offering support only to one telco is impossible. The government may find it difficult to let go of revenue, especially from for-profit private companies, at a time when the pandemic has stretched its finances. In the case of AGR dues, the Supreme Court order leaves no room for the government to make exceptions even for a company like Vodafone Idea that seems to be bleeding to death, fast. <div type="Video" msid="85209717" hostid="261" title="What if Vodafone Idea dies and can it be saved?" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=85209717"></div> That leaves us with a floor pricing regime that will define the minimum cost of service that operators can charge. This is a request that Telecom Regulatory Authority of India (TRAI) had earlier rejected but, according to reports, the proposal is back on the table for the Department of Telecom to consider. The government, too, finds itself between a rock and a hard place. It can’t be seen as saving a private company owned by a billionaire like Birla, with an estimated net worth of $14.3 billion as per Forbes, in partnership with a multinational giant like Vodafone. It may be a tough call to offer sops to other billionaires like Mukesh Ambani (net worth estimated at $90.2 billion by Forbes and Sunil Bharti Mittal (estimated net worth $12.9 billion), in a bid to provide relief to Birla’s firm. But letting Vodafone Idea die will turn Indian telecom into a duopoly, or a two player market, which may lead to an unpopular rise in the cost of services at a time when the government wants internet and digital technologies to be more widely accessible and adopted by people at large. As Chandrashekhar put it, “it's a difficult problem at the outset, but the solution requires not only a brilliant plan or a design, but it requires a taker”. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/what-if-vodafone-idea-dies/articleshow/85127937.cms">What if Vodafone Idea dies?</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-shares-spike-after-promoter-kumar-mangalam-birlas-meeting-with-indias-telecom-minister/articleshow/85861279.cms">Vodafone Idea shares spike after promoter Kumar Mangalam Birla's meeting with India's Telecom minister</a>

Market hopes Vodafone Idea will be saved and these are the rescue options

<ul><li>Vodafone Idea has silently increased prices of ₹598 and ₹749 postpaid plans.</li><li>The tariff hike is up to ₹50, and applies to two out of the four RED Family plans.</li><li>The new tariffs have been updated on the company’s website.</li><li>Analysts believe Vodafone Idea might need more than just tariff hikes to survive.</li><li><a href="https://www.businessinsider.in/">Checkout the latest news and updates on Business Insider.</a></li></ul>Vodafone Idea has announced a tariff hike in its postpaid plans. The third largest telecom company in India has silently increased prices of two of its postpaid plans by ₹50. The new tariffs are now in effect. According to Vodafone Idea’s <a href="https://www.myvi.in/postpaid/plans-and-packs">website</a>, the ₹598 plan is now available for ₹649, while the ₹749 plan is now priced at ₹799. It is worth noting that these two plans are a part of Vodafone Idea’s RED Family plans, not individual plans. The new tariffs are now applicable in all the circles where Vodafone Idea offers RED Family plans. Vodafone Idea RED Family plan details Vodafone Idea has increased prices of two out of eight postpaid plans it currently offers. This tariff hike affects the ₹598 and ₹749 plans, both of which are a part of the RED Family postpaid plans. The new plan prices are ₹649 and ₹799. The ₹649 plan offers unlimited voice calls, up to 80GB data and 100 SMS per month. This plan supports up to two connections. The ₹799 plan offers up to 120GB of data and supports up to three connections. Both the plans include free 1 year of Amazon Prime, Zee5, and Vi Movies &amp; TV subscriptions. <div type="Article" hostid="261" msid="77973120" title="Vodafone Idea rebrands as Vi as it gears up for its second innings, says ‘not shy’ to hike tariffs" mstype="2" mssubtype="0"></div> A sign of things to come? While Vodafone Idea has hiked tariffs of only two out of eight postpaid plans, it could be a sign of things to come. Tariff hikes have been rumoured for a while now. <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-rebrands-as-vi-as-it-gears-up-for-its-second-innings/articleshow/77973120.cms">During the rebranding of Vodafone Idea earlier in September 2020</a>, Vodafone Idea’s MD &amp; CEO, Ravindar Takkar said “everyone is selling below cost”. He also noted that the company is “not shy to take that step”, referring to tariff hikes. Although Vodafone Idea might need more than just tariff hikes to survive in the Indian telecom industry, it also needs to increase its average revenue per user (ARPU) considerably to stabilize. The embattled telco might need up to ₹18,800 crore in the next two years, along with a tariff hike to survive, <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-may-need-up-to-18800-crore-in-next-two-years-and-tariff-hikes-to-survive-says-a-new-report/articleshow/77923943.cms">according to a report by Jefferies Equity Research</a>. “Vodafone Idea does not have the financial flexibility and balance sheet to raise capital, but it needs equity injection if it has to survive,” Nitin Soni, senior director, Fitch Ratings, <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">told Business Insider</a>. “4G subscribers would be critical to get maximum benefit of tariff hikes, as we believe the highest rise in future tariffs will be on prepaid 4G plans,” said ICICI Securities in its report dated July 1. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-rebrands-as-vi-as-it-gears-up-for-its-second-innings/articleshow/77973120.cms">Vodafone Idea rebrands as Vi as it gears up for its second innings, says ‘not shy’ to hike tariffs</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-may-need-up-to-18800-crore-in-next-two-years-and-tariff-hikes-to-survive-says-a-new-report/articleshow/77923943.cms">Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Vodafone Idea News - Only cash can save Vodafone Idea from a slow death</a>

Vodafone Idea hikes tariffs of its postpaid plans — prices of ₹598 and ₹749 plans increased by ₹50

<ul><li>Vodafone Idea’s board has approved fundraising of up to ₹25,000 crore by way of debt and equity.</li><li> The infusion of funds will allow the company to meet the adjusted gross revenue (AGR) obligations for the next two years, giving it room to breathe while it optimizes its operations and hikes tariffs.</li><li> The fundraising will give a boost to the telco’s balance sheet which is currently reeling under the burden of the AGR demand which stands at ₹50,339 crore.</li><li> <a href="https://www.businessinsider.in/business/telecom/news/supreme-court-asks-airtel-vodafone-idea-and-others-to-pay-agr-dues-over-10-years/articleshow/77866137.cms">Check out the latest news and updates on Business Insider.</a></li></ul> Vodafone Idea has confirmed that it is raising up to ₹25,000 crore by way of selling shares and taking loans. In an exchange filing today, the struggling telecom company announced a fundraising of ₹15,000 crore, with an upper limit of ₹25,000 crore. In an exchange filing, Vodafone Idea stated that its board has approved fund raising of up to ₹15,000 crore through equity shares or debentures. The sale of equity shares can be through either public offer or private placement, leaving the window open for other companies to acquire a stake in the company. This comes at a time when companies like Google, Amazon and Verizon have been reportedly planning to invest in Vodafone Idea. The regulatory filing also states that the total fundraising has been capped at ₹25,000 crore, but the maximum amount that will be raised via loans is capped at ₹15,000 crore. The remaining, if any, will be done via sale of equity shares. <div type="Article" hostid="261" msid="77923943" title="Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report" mstype="2" mssubtype="0"></div> The struggling telco needs a combination of tariff hikes, government support and fund raising to survive beyond the current year. According to a report by Jefferies Equity Research, dated September 1, Vodafone Idea could require up to ₹18,800 crore by the end of March 2023. To do so, it will need to raise money since its existing operating profit is less than annual payments that will be due. <table style="border-collapse:collapse;mso-yfti-tbllook:1184"> <tbody><tr> <td style="border:solid black 1.0pt;mso-border-alt:solid black .5pt; mso-border-bottom-alt:solid black 1.0pt;padding:5.0pt 5.0pt 5.0pt 5.0pt; height:25.0pt"> Particulars </td> <td style="border:solid black 1.0pt;border-left:none;mso-border-left-alt: solid black .5pt;mso-border-alt:solid black .5pt;mso-border-bottom-alt:solid black 1.0pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> Amount </td> <td style="border:solid black 1.0pt;border-left:none;mso-border-left-alt: solid black .5pt;mso-border-alt:solid black .5pt;mso-border-bottom-alt:solid black 1.0pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> Liabilities </td> <td style="border:solid black 1.0pt;border-left:none;mso-border-left-alt: solid black .5pt;mso-border-alt:solid black .5pt;mso-border-bottom-alt:solid black 1.0pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> Amount </td> </tr> <tr> <td style="border:solid black 1.0pt;border-top:none;mso-border-top-alt: solid black 1.0pt;mso-border-alt:solid black .5pt;mso-border-top-alt:solid black 1.0pt; background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> Free cash flow </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black 1.0pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; mso-border-top-alt:solid black 1.0pt;background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt; height:25.0pt"> ₹2,500 crore </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black 1.0pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; mso-border-top-alt:solid black 1.0pt;background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt; height:25.0pt"> Annual AGR obligation </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black 1.0pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; mso-border-top-alt:solid black 1.0pt;background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt; height:25.0pt"> ₹7,844 crore </td> </tr> <tr> <td style="border:solid black 1.0pt;border-top:none;mso-border-top-alt: solid black .5pt;mso-border-alt:solid black .5pt;padding:5.0pt 5.0pt 5.0pt 5.0pt; height:25.0pt"> Operating profit (annualised) </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> ₹6,100 crore </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"></td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"></td> </tr> <tr> <td style="border:solid black 1.0pt;border-top:none;mso-border-top-alt: solid black .5pt;mso-border-alt:solid black .5pt;background:#D9D9D9; padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> Cost savings from Vodafone-Idea merger </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"> ₹4,000 crore </td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"></td> <td style="border-top:none;border-left:none;border-bottom:solid black 1.0pt; border-right:solid black 1.0pt;mso-border-top-alt:solid black .5pt; mso-border-left-alt:solid black .5pt;mso-border-alt:solid black .5pt; background:#D9D9D9;padding:5.0pt 5.0pt 5.0pt 5.0pt;height:25.0pt"></td> </tr> </tbody></table> Source: Company reports, Jefferies Equity Research Note: Annual AGR dues computed with an assumption of 9% interest rate per annum. But beyond FY21, the cash gap will widen to ₹4,200 crore and by FY23, it will balloon to ₹18,800 crore, the report states. Now that it has announced fundraising, the second option for Vodafone Idea is to announce tariff hikes. The Jefferies report suggests that a minimum 10% hike in tariffs is to be expected, but Vodafone Idea needs as much as 27% hike to cover its cash flow needs. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-may-need-up-to-18800-crore-in-next-two-years-and-tariff-hikes-to-survive-says-a-new-report/articleshow/77923943.cms">Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report</a> <a href="https://www.businessinsider.in/business/telecom/news/supreme-court-asks-airtel-vodafone-idea-and-others-to-pay-agr-dues-over-10-years/articleshow/77866137.cms">Supreme Court directs Airtel, Vodafone Idea and others to pay AGR dues over 10 years</a> <a href="https://www.businessinsider.in/business/telecom/news/the-agr-verdict-could-lead-to-a-reliance-jio-and-airtel-duopoly-in-the-indian-telecom-sector/articleshow/77883407.cms">The AGR verdict could lead to a Reliance Jio and Airtel duopoly in the Indian telecom sector</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Only cash can save Vodafone Idea from a slow death</a>

Vodafone Idea will raise up to ₹25,000 crore by selling shares and taking loans

<ul><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword> will make a major strategic announcement today on its virtual platform.</li><li>The company teased September 7 as a ‘big day’ on its official Twitter handle, setting the rumour mill on fire.</li><li>Vodafone Idea is currently battling for its survival, with the recent adjusted gross revenue (AGR) ruling delivering a body blow to the company’s prospects.</li><li><a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Check out the latest news and updates on Business Insider.</a></li></ul>Vodafone Idea is all set to make a strategic announcement today, September 7. According to an exchange filing by the telecom company, it will make the announcement virtually at 11:45 am today. The <keyword id="9893879" type="UNKNOWN" weightage="20" keywordseo="vodafone-idea-announcement">Vodafone Idea announcement</keyword> can be watched on the company’s webcast platform, starting at 11:45 am on September 7. The webcast is for stakeholders and media. Some reports suggest that this announcement could be a branding exercise, with the merged entity of Vodafone Idea getting a new logo, and perhaps a new brand name. Earlier last week, Vodafone Idea <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-raise-up-to-25000-crore-by-selling-shares-and-taking-loans/articleshow/77933604.cms">announced a fundraiser of up to ₹25,000 crore</a>, out of which ₹15,000 crore was said to be raised immediately. <div type="Article" hostid="261" msid="77923943" title="Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report" mstype="2" mssubtype="0"></div> Reports also suggest that US giants Amazon and Verizon are exploring an investment of over $4 billion (approx. ₹30,000 crore) in Vodafone Idea. This will allow them to pick up a major stake in the telco which is currently battling for its survival. Back in May, there were reports that tech giant <a href="https://www.businessinsider.in/tech/news/google-explores-5-stake-in-struggling-vodafone-idea-report/articleshow/76070370.cms">Google was exploring picking up a stake in Vodafone Idea</a>. While the company’s shares surged by more than 30% when news broke, the deal has not materialized yet. This comes at a time when the beleaguered telecom company has been dealt a serious blow by the Supreme Court in the adjusted gross revenue (AGR) case. <a href="https://www.businessinsider.in/business/telecom/news/supreme-court-asks-airtel-vodafone-idea-and-others-to-pay-agr-dues-over-10-years/articleshow/77866137.cms">In the verdict delivered on September 1</a>, the Supreme Court directed Vodafone Idea to pay up the remaining ₹50,339 crore in AGR dues over a 10-year period, even though the company sought a 15-year payment timeline. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Only cash can save Vodafone Idea from a slow death</a> <a href="https://www.businessinsider.in/business/telecom/news/the-agr-verdict-could-lead-to-a-reliance-jio-and-airtel-duopoly-in-the-indian-telecom-sector/articleshow/77883407.cms">The AGR verdict could lead to a Reliance Jio and Airtel duopoly in the Indian telecom sector</a> <a href="https://www.businessinsider.in/business/telecom/news/its-the-day-airtel-and-vodafone-idea-have-been-waiting-for-heres-the-agr-case-timeline-of-26-years/articleshow/77845908.cms">Airtel and Vodafone Idea get 10 years to repay AGR dues – here’s a timeline of the case</a>

Vodafone Idea to make big strategic announcement today, share price jumps by 6%

<ul><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword> needs a combination of tariff hikes, government support and fund raising to survive in the market, say analysts.</li><li>The struggling telco has a total (adjusted gross revenue) AGR liability of ₹58,254 crore, out of which ₹50,339 crore is still due.</li><li>The gap between Vodafone Idea’s operating profit and the payments due may balloon to ₹18,800 crore in next two years.</li><li>Reports of an investment of more than $4 billion by Amazon and Verizon sent the stock rallying by 30% on September 3, suggesting that investors believe Vodafone Idea is in a dire situation.</li><li><a href="https://www.businessinsider.in/business/telecom/news/supreme-court-asks-airtel-vodafone-idea-and-others-to-pay-agr-dues-over-10-years/articleshow/77866137.cms">Check out the latest news and updates on Business Insider.</a></li></ul>Vodafone Idea is staring at a difficult road ahead. With the Supreme Court fixing a 10-year payment timeline for the adjusted gross revenue (AGR) dues, the struggling mobile service provider needs a combination of tariff hikes, government support and fundraising to survive. According to a report by Jefferies Equity Research, dated September 1, Vodafone Idea could require up to ₹18,800 crore by the end of March 2023. To do so, it will need to raise money since its existing operating profit is less than annual payments that will be due. Therefore, the Board is meeting today (September 4) to consider a proposal to raise funds. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Liabilities </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Free cash flow </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,500 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Annual AGR obligation </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7,844 crore </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Operating profit (annualised) </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,100 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost savings from Vodafone-Idea merger </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,000 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Company reports, Jefferies Equity Research Note: Annual AGR dues computed with an assumption of 9% interest rate per annum. But beyond FY21, the cash gap will widen to ₹4,200 crore and by FY23, it will balloon to ₹18,800 crore, the report states. <div type="Article" hostid="261" msid="77866137" title="Supreme Court directs Airtel, Vodafone Idea and others to pay AGR dues over 10 years" mstype="2" mssubtype="0"></div> What does Vodafone Idea need to do to survive? There are two ways for Vodafone Idea to continue its operations – tariff hikes and additional fund raising. In the first round of tariff hikes of 30%, Vodafone Idea’s operating profits increased by 20%. “Vodafone Idea may need additional support from the government in the form of a further 2-year moratorium on deferred spectrum liabilities to remain solvent beyond FY23,” the report added. <div type="Article" hostid="261" msid="76766763" title="Vodafone Idea News - Only cash can save Vodafone Idea from a slow death" mstype="2" mssubtype="0"></div> Apart from this, fundraising also remains a critical piece of the puzzle for the company. <a href="https://www.livemint.com/companies/news/amazon-verizon-may-give-voda-idea-lifeline-11599102122521.html">Reports</a> of an investment of more than $4 billion (approx. ₹30,000 crore) from US giants Amazon and Verizon led to a 30% jump in the company’s share price on September 3. Another <a href="https://www.bloomberg.com/news/articles/2020-09-03/vodafone-s-india-unit-is-said-to-plan-1-5-billion-fundraising">report</a> suggested that the company is planning $1.5 billion (approx. ₹7,400 crore) fundraising via stake sale. Vodafone Idea’s board is assembling today to evaluate any and all fundraising proposals it has received. If this deal goes through, Vodafone Idea will have enough room to breathe easy for now and meet its AGR obligations. It could also allow the company to undertake capital expenditure required to boost its network quality and stem the outflow of subscribers. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Only cash can save Vodafone Idea from a slow death</a> <a href="https://www.businessinsider.in/business/telecom/news/the-agr-verdict-could-lead-to-a-reliance-jio-and-airtel-duopoly-in-the-indian-telecom-sector/articleshow/77883407.cms">The AGR verdict could lead to a Reliance Jio and Airtel duopoly in the Indian telecom sector</a> <a href="https://www.businessinsider.in/tech/news/google-explores-5-stake-in-struggling-vodafone-idea-report/articleshow/76070370.cms">Vodafone Idea shares surge more than 30% after Google reportedly considers a stake in the debt-laden telco</a>

Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report

New Delhi, Feb 19 () Vodafone Idea's shares on Wednesday closed over 38 per cent amid reports that the government in unlikely to invoke the company's bank guarantees as of now. On the BSE, the stock gained as much as 48.18 per cent to Rs 4.49 during the day. It closed 38.28 per cent higher at Rs 4.19. On the National Stock Exchange (NSE), the scrip rose 48.33 per cent to touch a high of Rs 4.45. Later, after shedding some gains, it settled 40 per cent up at Rs 4.20. The stock has ended the day in green after declining for seven consecutive sessions. The NSE saw an exchange of more than 100 crore shares of Vodafone Idea, and over 14 crore units were traded on the BSE. In this regard, the BSE sought a clarification from the telecom service provider about the sudden movement in the stock price. The company said all the information furnished by it is in public domain and there is no price-sensitive information pending which is to be disclosed to the stock exchanges. "There is no such announcement or price-sensitive information, which is pending to be intimated by the company to the stock exchanges. "All the information furnished by the company is in public domain and the company will comply with the Sebi Regulations, 2015, and duly keep the stock exchanges informed of all the price-sensitive information," the company said in its clarification to the BSE. According to the latest media reports, the government is unlikely to invoke bank guarantees of Vodafone Idea as of now. Encashing of the bank guarantees may sound the death knell for companies such as Vodafone Idea which has been struggling to garner the dues. A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore each for Airtel and Vodafone Idea. RUJ HRS

Vodafone Idea shares surge over 38 pc

<ul><li>The 14 year old battle on defining ADR will cost Airtel and Vodafone-Idea over ₹50,000 crore in penalties and interests.</li><li>The order also technically affects 13 other telecom companies which have ceased to exist.</li><li>While a few filed for bankruptcy, others have simply shut down operations. </li></ul>It is not just Bharti Airtel and Vodafone-Idea that are affected by the Supreme Court order which went in favour of the telecom department. Ideally, other than these two companies – which were three earlier–there were 13 others who could have been affected by the order, if they did survive. Fortunately for them and unfortunately for DoT – they did not. As much as ₹38,000 crore that the telecom department is owed can never be recovered, according to a report by Spark Capital. “Recovery is unlikely from bankrupt companies given banks are already taking a haircut on such telcos,” Nitin Soni, director of corporate at Fitch Ratings told Business Insider India. One of such is Reliance Communications which is now undergoing bankruptcy proceedings. It is the only telecom company for whom the change in definition of Adjusted Gross Revenue (ADR) is known along with penalties---at over ₹16,000 crores. However, since this order came much after it went into bankruptcy, there is no way could recover it. Aircel has been fighting a losing battle with its own debt and inability to keep up its operations. Just last year, the company became defunct and filed for bankruptcy. But the company was once the market leader in Tamil Nadu and also expanded to 6 other circles. But it was hit by a controversy over its takeover by Malaysian company Maxis Communications and was heavily investigated by the CBI. By 2012, it had started scaling down its operations owing to excessive competition among other hurdles. It had tried to merge itself with many operators including Sistema, Airtel and RCom but those deals never took off. The next in line is BPL Communications which unlike other telecom companies, died a natural death. Its held licence only for the Mumbai circle which expired in 2014. While it did consider re-applying for it and also merging itself with Airtel, that was not to be. It simply stalled operations and allowed its users to port out. DoT is getting nothing from it, as no traces of this company exists now. There are many others which have been protesting against DoT’s move to charge ADR on all the revenues of a telecom company instead of those which centric to telecom operations. Some of them are listed entities like Tata Teleservices Maharashtra, and others like Tata Teleservices which also includes Tata Docomo and Tata Indicom. But these companies have since merged with Airtel and the extent of their liability and ability to pay up is not known.

Airtel and Voda-Idea could pay DoT, but what about ₹38,000 crore from defunct telcos?

The <a href="http://www.businessinsider.in/searchresult.cms?query=chennai+rains">Chennai rains</a> have left <keyword id="6379816" type="UNKNOWN" weightage="100" keywordseo="Telecom-operators">telecom operators</keyword> suffering with most of them incurring losses to the tune of Rs 300 crore. It has compelled Finnish network gear maker Nokia to stop production of 3G and 4G gear at its nearby factory. 
 
China's biggest telecoms gearmaker <a href="http://www.businessinsider.in/searchresult.cms?query=Huawei+">Huawei</a> also said the "flood situation had affected its Chennai factory", which purely caters to export markets such as China, Asia Pacific and the Middle East. 
 
"Out of the Rs 300 crore losses estimated by Cellular Operators Association of India (COAI), Rs 100 crore is on account of network restoration and Rs 200 crore on account of revenue losses over the past seven days," Rajan Mathews, director general of the GSM industry lobby body, said. 
 
Chennai continues to reel under the worst rains in over a century with the death toll from flooding in the southern Indian city reportedly mounting to nearly 270. This has prompted the National Disaster Response Force (NDRF) to intensify relief and rescue operations in the flood-battered city and adjoining areas. So far, it has reportedly rescued over 10,000 people. 
 
Global network vendors such as Nokia and Huawei, who have a large manufacturing presence near Chennai, have been hit hard by the floods. 
 
Nokia said it had been compelled "to temporarily stop production at its factory" in Chennai's outskirts over the past couple of days to "prioritise safety of its employees and equipment". Some 1300 people work in Nokia's Chennai factory. 
 
Nokia's Chennai works, which is amongst its key factories globally, meets the 3G and 4G network gear requirements of the India and as many as 26 export markets across continents. 
 
A senior industry executive aware of the devastation said Nokia is closely working with its global factories in China and Finland to balance production volumes and bridge the Chennai production shortfall for meeting global customer requirements. Since Nokia follows a global supply chain, processes are in place to ensure customers can be served from its other global factories, he said. 
 
"Nokia India is also changing inbound and outbound shipping points to Bangalore instead of Chennai," and taking steps to "organise alternate shipments of raw material to ensure minimal disruption to production in times of crisis like this," said a company spokesman in a written response to ET's queries. 
 
Huawei, in turn, said the company had "established emergency support teams to ensure staff safety, equipment safety, network and services safety, as well as to communicate with customers in response to the heavy flooding in Chennai". 
 
Huawei has an existing SEZ in Chennai where it manufactures optical network transmission systems purely for export markets like China, APAC and the Middle East. 
 
China's leading telecom gear maker did not confirm if production at its Chennai unit had come to a standstill, but said "the factory has been affected by the flood situation", in response to ET's queries. 
 
The deadly floods have severely damaged telecoms infrastructure and impacted networks across all operators in a huge way. So much so, <a href="http://www.businessinsider.in/searchresult.cms?query=Bharti+Airtel">Bharti Airtel</a>, <keyword id="6354924" type="PERSON" weightage="100" keywordseo="Idea-Cellular">Idea Cellular</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=Vodafone">Vodafone</a> India have been struggling to keep their services going amid the incessant downpour and floods in the vicinity. 
 
Unavailability of grid power, water-logging resulting in submerged sites and unavailability of diesel in the absence of transportation have been listed as major roadblocks in network operations in affected areas. All telcos are also facing problems in certain areas while restoring operations because of inaccessibility to the affected sites. 
 
(Image credit: Economic Times)

Telecom companies suffer Rs 300 crore loss due to Chennai floods

New Delhi, Feb 18 () Amid talks of the government mulling encashing of bank guarantee over default in payment of dues, Vodafone Idea Chairman Kumar Mangalam Birla on Tuesday met Telecom Secretary Anshu Prakash as he looked for options to keep the company afloat.After the meeting, Birla said he "cannot say anything at the moment."Birla, who met the telecom secretary for over an hour, was accompanied by Ravinder Takkar, MD &amp; CEO of Vodafone Idea.He refused to respond to queries on whether or not Vodafone Idea Ltd (VIL) would default on payment of AGR dues or if the company could head towards insolvency.Vodafone Idea on Monday paid Rs 2,500 crore to DoT and promised to pay another Rs 1,000 crore before the end of the week.But the amount paid for now is less than 5 per cent of the dues that the DoT estimates the company owes to the government following a Supreme Court ruling that asked for including non-telecom revenues of telcos in computing statutory payments such as licence fee and spectrum charges.The Supreme Court on Monday refused to stop DoT from taking any coercive steps for recovery of dues from Vodafone Idea.In December, Birla said Vodafone Idea may have to shut if there is no relief on statutory dues. "If we are not getting anything, then I think it is the end of the story for Vodafone Idea," Birla had said. "It does not make sense to put good money after bad... We will shut shop." After a Supreme Court rap on February 14 for missing the payment deadline, top telecom firms Bharti Airtel, Vodafone Idea and Tata Teleservices on Monday scrambled to pay a part of the outstanding dues.While Vodafone Idea put in Rs 2,500 crore and promised another Rs 1,000 crore later this week, Airtel paid Rs 10,000 crore. Airtel said it will clear the remaining dues before the next date of hearing on March 17 but Vodafone Idea has so far not provided a clear deadline for making all payments.Tata Teleservices paid Rs 2,197 crore, the entire outstanding it believes to have arisen after the October ruling of the apex court for calculating dues after adding non-telecom revenues."Tata Teleservices and Tata Teleservices (Maharashtra) Ltd have made a payment of Rs 2,197 crore to the DoT towards licence fee and spectrum usage charges," the company said in a statement on Monday.The payment is to settle all its AGR outstanding."TTSL and TTML have also submitted to DoT the details of calculations in support of the payment," it had said.The Department of Telecommunications (DoT) -- which last week drew flak for ordering no coercive action even after telcos missed the January 23 payment deadline set by the Supreme Court -- is mulling the option of encashing bank guarantees given by firms when they got telecom licences, as none of the telcos have paid the full amount.Encashing of the bank guarantees may sound the death knell for companies such as Vodafone Idea which has been struggling to garner the dues.A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore each for Airtel and Vodafone Idea.The Supreme Court last week rejected a plea by companies such as Bharti Airtel and Vodafone Idea for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences. It threatened to initiate contempt proceedings against top executives of these firms for non-payment.Some telecom firms are already struggling with mounting losses and debt and the additional liability has raised concerns of them defaulting on existing loans.Of the estimated dues that include interest and penalty for late payments, Airtel and Vodafone Idea owe about 60 per cent. MBI SR ANUANU

Birla meets Telecom Secy as Voda Idea stares at over Rs 53,000 cr AGR dues

<ul><li><keyword id="64373" type="General" weightage="20" keywordseo="shoppers-stop" source="Orion">Shoppers Stop</keyword> reported a consolidated revenue of ₹972 crore for the December quarter.</li><li>The Indian department store chain noted that their return to “profitability” comes with zero net debt.</li><li>Shoppers Stop’s sales have also grown by 34% in the festive season of October to December.</li></ul>Shoppers Stop’s stock went up 15% on Friday morning after the company reported a profit for the first time in 10 months. The company’s shares were trading at ₹417 at 9:49 a.m., on January 21. The Indian department store chain — which sells everything from apparel to cosmetics — reported a consolidated revenue of ₹972 crore for the December quarter (Q3 of fiscal year 2022). Its profit also went up to ₹77 crore from ₹25 crore loss in the same quarter a year ago. The company noted that their return to “profitability” comes with zero net debt. <div type="image" title="Shoppers Stop shares jump 15% after company reports its first profit in more than two years" msid="89033276" hostid="261"></div> "We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand," Venu Nair, the managing director and chief executive (CEO) of Shoppers Stop, said. He also mentioned that the customer sentiment is positive due to the double vaccinations, fewer COVID-19 related restrictions and an overall improvement in safety protocols. Shoppers Stop’s sales have also grown by 34%, compared to last year, in the festive season of October to December. The average transaction value (ATV) — average amount that a consumer spends in a single transaction — increased by over ₹500 in the last one year. Meanwhile, the company’s average selling price (ASP) increased to nearly ₹1,500. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Metric </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oct-December 2020 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oct-December 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Average Selling Price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,224 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,479 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Average Transaction Value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,815 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,345 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Shoppers Stop earnings SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/reliance-industries-earnings-today-hul-icici-bank-and-vodafone-idea-also-in-focus-on-january-21/slidelist/89029988.cms">Reliance Industries earnings today; HUL, ICICI Bank and Vodafone Idea also in focus on January 21</a> <a href="https://www.businessinsider.in/india/news/india-reports-more-than-3-lakh-covid-19-cases-for-the-second-consecutive-day-703-deaths-in-last-24-hours/articleshow/89031198.cms">India reports more than 3 lakh COVID-19 cases for the second consecutive day, 703 deaths in last 24 hours</a> <a href="https://www.businessinsider.in/stock-market/news/last-day-to-subscribe-to-ags-transact-ipo-gmp-drops-to-10/articleshow/89026193.cms">Last day to subscribe to AGS Transact IPO, GMP drops to ₹10</a>

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