Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New Delhi, Jan 30 () Industry body COAI is pitching for a 10-15 year payment schedule for telecom companies to pay their past statutory dues, beginning with part-payment upfront and a two-year moratorium.
 This formula of easier payment schedule to meet statutory obligations would offer the much-needed reprieve to telcos such as Bharti Airtel and Vodafone Idea, whose combined liabilities after the recent SC verdict run into billions of dollars, according to the Cellular Operators' Association of India (COAI).
 COAI Director General Rajan Mathews said the industry requires a debt package for payment of past statutory dues with a two-year moratorium, as in the case of payment made for spectrum bought in auctions.
 "Give telecom companies 10-15 years for payment of the full adjusted gross revenue (AGR) dues, a two-year moratorium and an interest rate at interbank borrowing rate levels that is at around 4-5 per cent," Mathews said.
 There could be an upfront payment of about 15 per cent, which is equivalent of the principle AGR amounts, he added.
 "The government will easily get Rs 15,000-20,000 crore only through upfront payments from large operators," Mathews said.
 This will be a "reasonable" payment schedule for the crisis-ridden telecom industry, as it would allow them to invest money into network expansion and new technologies, the COAI said.
 Fifteen telecom companies owe the government Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges. These liabilities arose after the Supreme Court in October last year held that non-core revenues have to be considered for calculating statutory dues from adjusted gross revenue (AGR).
 In the case of Bharti Airtel, the liabilities added up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the spectrum usage charge dues (not including the dues of Telenor and Tata Teleservices). Vodafone Idea, which is staring at unpaid statutory dues of Rs 53,038 crore, including Rs 24,729 crore of spectrum dues and Rs 28,309 crore in licence fee, has already warned of shutdown if no relief is given.
 Bharti Airtel, Vodafone Idea Ltd, and Tata Teleservices have, meanwhile, jointly filed a modification application in the Supreme Court seeking more time to pay the statutory dues.
 The fresh plea for relief on the payment schedule came after Supreme Court, earlier this month, dismissed the review petitions filed by telecom companies against the apex court's October 24, 2019, verdict. MBI HRS

COAI urges govt to offer telcos 10-15 yrs for dues settlement

New Delhi, Mar 17 () The government's latest proposal seeking easier terms of statutory payment is "incrementally positive" for Vodafone Idea, but uncertainty on outstanding dues still prevails given the discrepancy between AGR math of companies and DoT, according to a brokerage report."We think the discrepancy between telcos' AGR estimate and DoT's estimate will take some time (9-12 months) to resolve with DoT looking to carry out the detailed audit of telcos' claim. We think this can potentially result in another legal battle if both parties maintain a recalcitrant attitude," Credit Suisse said in its latest note.The Centre on Monday moved the Supreme Court seeking approval of its formula to allow telecom companies to pay their Adjusted Gross Revenue (AGR) dues in annual instalments for over 20 years to avoid impact on the economy. Under the formula mooted by the government, telecom companies impacted by the October 24 verdict of the Supreme Court could be allowed to pay the DoT-assessed dues in annual instalments in over 20 years (or less if they so opt), "duly protecting the next present value of the said dues using a discount rate of eight per cent (based on one year marginal cost of lending rate of SBI which is currently 7.75 per cent)".As per the formula, the interest on the unpaid amount, penalty, and interest on penalty in relation to the past dues as on the date of the judgement will not be levied beyond the date of the said judgement, and the net present value will be protected using the discount rate.The proposal placed before the SC for consideration also states that telecom firms would continue to be liable for interest, penalty, and interest on penalty for unpaid dues of licence fee and spectrum usage charge which arises prospectively after the October 24, 2019 verdict. In its report, Credit Suisse observed that the Department of Telecom (DoT) is seeking a 20 year tenure for AGR payment, and said, "while this is incrementally positive for Vodafone Idea as it can ease the immediate cash flow burden on the company, the uncertainty on outstanding dues still prevails."DoT in its filing has stuck to its original AGR calculation of Rs 53,000 crore and Rs 37,700 crore for Vodafone Idea (VIL) and Bharti Airtel, respectively, which are higher than the estimates by these companies. On the latest tranche of payment (Rs 3,354 crore) made by VIL on Monday towards its principal dues, Credit Suisse said, while the company may be able to sustain over next two years with the spectrum and AGR payment deferment, its cash flow analysis suggests that business viability is under cloud even at Rs 200 ARPU (and subscriber base of 280 million) once the deferred spectrum payment resumes in fiscal 2023."The company will need strong operational improvement along with meaningful equity infusion to sustain in the long term. Our analysis further suggests that VIL would need Average Revenue Per User (ARPU) levels of Rs 145 to meet interest obligation on its debt and ARPU levels of Rs 230 to achieve cash flow breakeven (post FY23)," it said. The analysis is sensitive to subscriber market share assumption where generous assumption of 280 million has been taken. "The key variable for sector viability is mobile pricing where there is limited clarity on TRAI's stance on floor pricing," it said.While telcos, in their response to Telecom Regulatory Authority of India (TRAI) consultation paper have sought introduction of floor tariff in addition to usage charges (data and voice) which helps to raise revenues for telcos in the near term, Competition Commission of India has opposed it, the report said. MBI MBI ANUANU

Govt formula on AGR payment incrementally positive for VIL, but uncertainty on dues looms

<keyword id="7448705" type="UNKNOWN" weightage="20" keywordseo="vodafone-idea-shares">Vodafone Idea shares</keyword> plunged over 17 per cent, while the stock price of Bharti Airtel surged over 4 per cent on Tuesday after the Supreme Court said that the telecom operators will have to clear their dues in 10 years time with a 10 per cent up front payment by March 31, 2021. Around 12.30 p.m., Bharti <keyword id="1181208" type="PERSON" weightage="20" keywordseo="Airtel-shares">Airtel shares</keyword> on the BSE were trading at Rs 537.75, higher by Rs 23.80 or 4.63 per cent from its previous close. Vodafone Idea shares on the BSE were trading at Rs 8.40, lower by Rs 1.79 or 17.57 per cent from its previous close. The top court said that every year by February 7, payment has to be made and telecom companies will have to face contempt proceedings along with a penalty in case of default in payment of annual instalment. The Centre had sought a 20-year timeline for the adjusted gross revenue (AGR) payments, and both Vodafone Idea and Bharti Airtel had sought a 15-year timeline. Vodafone Idea is in a financially weaker position than the other telcos and has time and again said that it would have to shut shop if it were to pay the dues in one go. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/this-startup-a-linkedin-like-platform-for-indias-blue-collar-workers-gets-more-funds-from-lightspeed-and-sequoia/articleshow/77866010.cms" data-type="tilCustomLink">This startup – a LinkedIn like platform for India’s blue-collar workers – gets more funds from Lightspeed and Sequoia</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" data-type="tilCustomLink">Supreme Court directs Airtel, Vodafone Idea and others to pay AGR dues over 10 years</a>

Vodafone Idea cracks 17%, Airtel up 4% after Supreme Court directs telcos to pay AGR dues over 10 years

<ul><li>The highest court of the country just upheld the Indian government's plea to demand huge sums of disputed levies from the telecom companies.</li><li>Airtel and Vodafone Idea may have to shell out ₹50,000 crore together to the Indian government after the latest Supreme Court.</li><li>The Department of Telecommunications believes that a whole lot of other earnings from dividends and handset sales should also be a part of it, while the companies contended that the levy should only be on the core telecom services revenue.</li></ul>Airtel and Vodafone Idea may have to shell out ₹50,000 crore together to the Indian government after the latest Supreme Court order that has upheld the demand for adjusted gross revenue (AGR) from Department of Telecom. Airtel and Vodafone-Idea's stock prices fall sharply. The latter losing nearly a fifth of their value in trade soon after the <keyword id="6360346" type="UNKNOWN" weightage="20" keywordseo="SC-verdict">SC verdict</keyword>. 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/814900"></div>
]]></cdata></div>



 What is the AGR dispute? This is a dispute on how much licence and other fees has to be paid on the spectrum that telecom companies own. While telecom companies believe that they should pay the fees based on their earnings from the core telecom business only. But the Department of Telecommunications believes that a whole lot of other earnings from dividends and handset sales should also be a part of it. This would expand the scope of AGR and since it is an old dispute, it can be as high as ₹92,000 crore that all telcos have to pay up. The incumbent telecom companies of Vodafone-Idea and Bharti Airtel will have to pay the highest chunk of around ₹50,000 crore. The merged entity of Vodafone Idea has already borne the most brunt of the decision as its stock fell by 23% as soon as the news broke. Though Reliance Industries share price is not directly affected, if the government chooses to charge extra fees on handset sales, it will also affect Jio’s strategy going forward. It is known to sell handsets in large number of basic level handsets as it adds rural subscribers into its fold. It will affect the already fragile margins of the company. However, the financial muscle of Airtel and Vodafone-Idea will be much weaker after they pay up these dues, and their weakness directly and indirectly be to Reliance Jio's advantage. More importantly, this will also reduce the amount of money available with these companies to bid for the upcoming 5G spectrum auction. The story is developing.

Airtel and Vodafone-Idea get a devastating blow from India's Supreme Court

<ul><li>Jio shot off a letter to COAI breaking the myth of doom and gloom in the sector.</li><li>Jio blamed Airtel and Vodafone-Idea of not sufficiently investing in network expansion.</li><li>It accused COAI of being a mouthpiece of the two operators and not an industry body.</li></ul><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s telecom battle just escalated from tariff war a war of words. After the Supreme Court verdict which would lead to top players Bharti Airtel and Vodafone Idea shelling out as much as ₹92,000 crore – an industry association COAI came to their support. The Cellular Operators Association of India warned that the telecom sector would turn into a monopoly. And Jio is not impressed. It shot off a letter to COAI breaking the myth of doom and gloom in the sector. It said not that not only can they pay up the dues, but also blamed them from not sufficiently investing to keep up with the sector. “These operators anyways were not investing sufficiently in the sector and have been shedding crocodile tears by claiming financial stress for a long time now and have not shown any inclination to modernize the networks,” said Jio in a letter to the COAI, making it clear to the telecom department that it does not agree with COAI views on the industry. 
 
 
 
 
 
 <div type="image" title="jio price" msid="71830580" hostid="261"></div>











 Jio also foresaw that in an event when the players fail to pay up the aggregate gross revenue (AGR) dues as per the new calculation – which includes non-telecom revenue – will not result in a monopoly. That’s because Jio is expecting two state-owned players—BSNL and MTNL which are unable to pay salaries to their employees—too keep the competition high in the sector. The fact that the industry body sought a bailout package from the government over these dues, irked Jio immensely. “The financial difficulties of these operators are an effect of their own commercial decisions (tariff cuts) and government should not be obliged to bail them out for their own commercial failure and financial mismanagement,” Jio said. As Vodafone and Airtel continue to saddle debt after Jio launched in 2016, Jio last week announced that it will turn debt free as it has been spun off into a different entity from Reliance Industries which includes energy, retail, media and other businesses. SEE ALSO <a href="https://www.businessinsider.in/business/news/reliance-jio-airtel-and-vodafone-idea-may-raise-tariff-soon/articleshow/71757089.cms">Whether you use Jio, Airtel, Vodafone-Idea, get ready to pay more for mobile services— sooner than later</a>

Jio, Airtel, and Vodafone-Idea are down to smack talk as the great Indian telecom race enters knockout round

New Delhi, Feb 14 () With the Supreme Court on Friday taking a strong view of non-compliance of its order on payment of statutory dues by telecom firms, situation for Vodafone Idea is "particularly vulnerable" and the risk of duopoly in the sector is higher than before, according to an analyst."There is no question that this is bad news for the telecom industry. It makes situation of Vodafone Idea particularly vulnerable, even more than it was," Mahesh Uppal, director at consulting firm Com First India said.He also said the risk of a duopoly in telecom sector is higher than before. At present there are three private players in the Indian mobile market -- Bharti Airtel, Vodafone Idea and Reliance Jio -- besides the ailing state-owned operators BSNL/MTNL.Uppal said the room for maneuver is less now for the operators, but added that if the government saw the situation as long-term problem, it could consider a change in policy."But it (what happened today) wasn't unexpected seeing SC's position in last 2-3 hearings...given its past position that operators had signed licence agreement and hence obliged to pay. So, it was unlikely that there would have been any dilution in that position," Uppal pointed out.The Supreme Court on Friday directed the managing directors and directors of telcos and other firms to explain why contempt action be not taken against them for non-compliance of its order to pay adjusted gross revenue (AGR) of Rs 1.47 lakh crore to the Department of Telecommunications.Taking strong note of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order passed by DoT's desk officer, staying the effect of its verdict in AGR matter."We don't know who is creating this nonsense. Is there no law left in country... It is better not to live in this country and rather leave the country," the bench observed.In all, as many as 15 entities owe the government Rs 1.47 lakh crore -- Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges.These dues arose after the Supreme Court, in October last year, had upheld the government's position on including revenue from non-core businesses in calculating the annual Adjusted Gross Revenue (AGR) of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.VIL is confronted with the dues worth Rs 53,000 crore that it is expected to pay the government - its liabilities add up to Rs 24,729 crore of spectrum dues and another Rs 28,309 crore in licence fee, and the company had earlier warned of shutdown if no relief was given.Vodafone Idea in its earnings statement on Thursday had sounded out warnings on "material uncertainty" casting "significant doubt" on its ability to continue as going concern.The company's ability to continue as a going concern is essentially dependent on a positive outcome of its modification application in the Supreme Court on the AGR matter and any relief from the telecom department on payments, VIL had said on Thursday.Last week, Vodafone Chief Executive Officer Nick Read had said the situation in India is critical, following the AGR ruling of the Supreme Court. The British telecom major holds 45.39 per cent stake in VIL.Rival Bharti Airtel's liabilities added up to nearly Rs 35,586 crore, including licence fee and spectrum usage charge dues. Airtel had recently said that previously-mentioned material uncertainty on the group's ability to continue as a going concern "no longer exists" after the recent Rs 21,502 crore fund raising by it.Most of the remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies. MBI BAL

Risk of duopoly in telecom sector higher than before: Analyst

(Eds: Adding details) New Delhi, Feb 17 () With the government coming down heavily on telcos after the Supreme Court's rap, Bharti Airtel on Monday said it has paid Rs 10,000 crore to the telecom department towards statutory dues.The company said it will make payment of balance amount after self-assessment exercise."The...amount of Rs 10,000 crore has been paid on behalf of Bharti Airtel, Bharti Hexacom, and Telenor," the Sunil Mittal-led company said in a statement.As much as Rs 9,500 crore has been paid on behalf of Bharti Airtel (including Telenor India which merged with the company), and another Rs 500 crore for Bharti Hexacom.As per the government's assessment, Airtel owes nearly Rs 35,586 crore in statutory dues, including licence fee and spectrum usage charge.After facing the ire of the Supreme Court for putting on hold recovery of dues from telecom companies, the telecom department on February 14 began issuing orders asking firms such as Bharti Airtel and Vodafone Idea to clear past dues immediately.The DoT swung into action and started issuing circle or zone-wise demand notices to firms, asking telcos cough up their liabilities immediately or face action in line with licence terms without any further notice.Some circles like UP (West) insisted that payment be made by Friday 11.59 PM, while others like UP (East) zone said its field office will remain open even on Saturday (February 15) to facilitate payment of liabilities by companies - underlining the telecom department's resolve to collect the unpaid dues at the earliest and indicating its unwillingness to yield further on timelines.On February 14 (Friday), Airtel had said it will pay Rs 10,000 crore to the Department of Telecommunications by February 20 and the remaining before March 17.But on Monday, the company rushed to make part payments and said, "we are in the process of completing the self assessment exercise expeditiously and will duly make the balance payment upon completion of the same, before the next date of hearing in (the) SC".The company said it will also submit supporting details at the time of making balance payment.In all, 15 entities owe the government Rs 1.47 lakh crore -- Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges.These dues arose after the Supreme Court, in October last year, had upheld the government's position on including revenue from non-core businesses in calculating the annual Adjusted Gross Revenue (AGR) of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.The apex court last week directed the managing directors and directors of telcos and other firms to explain why contempt action be not taken against them for non-compliance of its order to pay adjusted gross revenue (AGR) dues to the DoT.Taking strong note of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order passed by the DoT's desk officer, staying the effect of its verdict in the AGR matter.Vodafone Idea Ltd is confronted with the dues worth Rs 53,000 crore - its liabilities add up to Rs 24,729 crore of spectrum dues and another Rs 28,309 crore in licence fee.Vodafone Idea, in a regulatory filing on Saturday, had said it is assessing the amount that can be paid towards AGR dues, although it reiterated that continuation of business in India will depend on "a positive outcome" of its modification plea filed before the apex court."The company proposes to pay the amount so assessed in the next few days," VIL had said. MBI BALBAL

You Searched For "SC verdict on AGR" and got 7 results

COAI urges govt to offer telcos 10-15 yrs for dues settlement

PTI

Govt formula on AGR payment incrementally positive for VIL, but uncertainty on dues looms

PTI

Vodafone Idea cracks 17%, Airtel up 4% after Supreme Court directs telcos to pay AGR dues over 10 years

IANS

Airtel and Vodafone-Idea get a devastating blow from India's Supreme Court

Sriram Iyer

Jio, Airtel, and Vodafone-Idea are down to smack talk as the great Indian telecom race enters knockout round

Katya Naidu

Risk of duopoly in telecom sector higher than before: Analyst

PTI

Airtel pays Rs 10,000 crore to govt towards statutory dues

PTI

Popular Keywords

Buying Guides