New Delhi, Dec 17 () The 5G trials are expected to begin in the last quarter of the current fiscal, and the government has neither approved nor rejected any applicant so far, a senior telecom department official said on Tuesday.
Asked if the government has taken a decision on Huawei's participation, the official said that 12 applications have been received for 5G trials and that it has not rejected or approved any proposal so far.
"The 5G trials will start in the last quarter of the current financial year," the official said.
Another senior government functionary said that any proposal on 5G must address twin considerations - first adoption of new technology, and imperatives of national security. The official said that 5G should not be linked to general spectrum auctions - which is expected to take place in March-April next year.
The technology for 5G is yet to evolve, and major global players are themselves in the process of evaluating the ecosystem and use cases for 5G. It has phenomenal potential of speed and futuristic applications, the official added.
To another question on implication of the Supreme Court's adjusted gross revenue (AGR) verdict on non telecom companies, the official said that certain PSUs like DMRC, Powergrid and Railtel have given their representation to the telecom department, which is being examined. These PSUs have approached the government saying that additional statutory dues should not be levied on them. MBI BAL

5G trials to start in Jan-Mar quarter this fiscal: DoT official

New Delhi, Feb 1 () The government on Saturday increased the revenue estimate from the debt-ridden telecom sector by over two-folds to Rs 1.33 lakh crore for 2020-21 mainly on account of adjusted gross revenue dues. 
 The government in the receipt budget has pegged a revenue collection of Rs 1,33,027.2 crore for financial year 2020-21 under communications head. 
 It expects a revenue of Rs 58,686.64 crore under communications head in the current fiscal year against budgeted amount of Rs 50,519.8 in 2019-20.
"Receipts under 'Other Communication Services' mainly relate to the license fees from telecom operators and receipts on account of spectrum usage charges," the budget document explained.
The debt-laden telecom industry is saddled with Rs 1.47 lakh crore in additional statutory dues in the wake of a recent Supreme Court ruling on Adjusted Gross Revenue (AGR). Telecom companies owe the government Rs 92,642 crore in unpaid licence fee, and another Rs 55,054 crore in outstanding spectrum usage charges.
According to government data, the liabilities in the case of Bharti Airtel add 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 SUC dues (excluding the dues of Telenor and Tata Teleservices).
In the case of Vodafone Idea, this number stands at a cumulative Rs 53,038 crore, including Rs 24,729 crore of SUC dues and Rs 28,309 crore in licence fee.
The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
The Supreme Court had allowed three months to the affected telecom operators to cough up the amounts due to the government - that deadline expired on January 23 - although the Telecom Department did not take any coercive action against defaulters as their appeals seeking relaxation in payment timelines in pending in the apex court's order. Bharti Airtel, Vodafone Idea Ltd, and Tata Teleservices have 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, last month, dismissed the review petitions filed by telecom companies against the apex court's October 24, 2019, verdict. 
The Department of Telecom is also working on spectrum auction which is likely to be held in April-May 2020. PRS MBI PRS MR
MR

Govt estimate Rs 1.33 lakh cr revenue from telecom sector in 2020-21

<ul><li>Analysts are bullish on the Airtel stock, expecting it to deliver returns of up to 68% in the next one year. </li><li>The bullish sentiment exists even though the <keyword id="4792703" type="PERSON" weightage="20" keywordseo="airtel-share-price">Airtel share price</keyword> has taken a beating since July, falling by over 23%. </li><li>The post-lockdown recovery led by workers returning to cities, the trend towards digital and long-term recharges are amongst the factors cited by analysts in their positive outlook. </li><li><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">Check out the latest news and updates on Business Insider.</a> </li></ul>Analysts expect Bharti Airtel to improve its average revenue per user (ARPU) and revenue growth as India continues to ease COVID-19 restrictions in phases. The post-lockdown recovery has led to analysts being bullish on the Airtel stock, with an estimated upside of nearly 68%. The Airtel stock has taken a beating over the last three months. Factors like promoters selling a part of their stake, MSCI rebalancing, and the missing price hike are amongst the factors which pulled the share price down. <div type="image" title="Airtel share price" msid="78871636" hostid="261" caption="&amp;lt;p&amp;gt;Airtel share price&amp;lt;/p&amp;gt;"></div> In its report dated October 22, Citi Research stated that the pessimism was overdone and identified three potential catalysts that could send the Airtel share price rocketing to ₹690 in the next 90 days. These factors include market share gains or tariff hikes, recovery in new 4G subscribers, and new digital plans in the near future. ICICI Securities noted that Airtel’s performance in terms of subscriber additions is ‘underappreciated’. According to its forecast, Airtel added 4 million subscribers, while the telecom industry lost 2.1 million active subscribers. <div type="Article" hostid="261" msid="78222570" title="Airtel seems to be sticking to its strengths while its shareholders want Jio-like fireworks" mstype="2" mssubtype="0"></div> Post-lockdown recovery to help Airtel weather Q2’s seasonal challenges Axis Capital noted that despite the second quarter being seasonally weak for the telecom industry, the post-lockdown recovery is likely to help telcos post moderate growth. The firm ascertained this to four factors: <ol><li>Pickup in recharges as people return to cities. </li><li>More people were stationed in cities in this quarter when compared to the same period last year. </li><li>Digital recharges are gaining momentum. </li><li>Long-term recharges are becoming increasingly popular. </li></ol>Q2FY21 Earnings Estimates <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 1.4967375pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">Brokerages on Bharti Airtel </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 1.4967375pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">Estimated EBITDA </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 1.4967375pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">Estimated Revenue </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 1.4967375pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">Axis Capital </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 1.4967375pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+3.4% </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 1.4967375pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+2.5% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">IIFL Securities </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+1.9% </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+1.2% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">B&amp;K Securities </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+5.8% </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#c0c0c0;padding:5pt 2pt 5pt 2pt;overflow:hidden;overflow-wrap:break-word;">+4.6% </td></tr></tbody></table> Note: EBITDA and Revenue for Q2 FY21 compared with Q1 FY21. ‘Tariff no barrier’ Other analysts suggest that even in the absence of tariff hikes, Airtel will likely outperform. “Even in case of no hike, Bharti’s superior network and rising ARPU premium will propel market share gains, creating long-term value,” Edelweiss Research said in its report dated October 23. “A delay in tariff hikes and/or in VI’s capital raise should imply continued RMS gains for Bharti,” said Citi Research, noting that Airtel will likely benefit even if tariff hikes are delayed. Analysts bullish on Airtel, give it a ‘outperform’ rating Several major analysts are bullish on Airtel with a ‘BUY’ recommendation. The maximum upside is as high as 68% compared to the market price of ₹434.05 as of October 26, 2020. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Brokerage firm </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Target Price </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Upside </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">B&amp;K Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹725 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">68% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Citi Research </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹690 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">60% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹650 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">51% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Bernstein Research </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹600 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">39% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss Research </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹589 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">37% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">IIFL Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹577 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">34% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Axis Capital </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Not available </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">&gt;15% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BUY </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/airtel-africa-q2-net-profit-slumps-9-amid-coronavirus-woes/articleshow/78827146.cms">Airtel Africa Q2 net profit slumps 9% amid coronavirus woes</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-seems-to-be-sticking-to-its-strengths-while-its-shareholders-want-jio-like-fireworks/articleshow/78222570.cms">Airtel seems to be sticking to its strengths while its shareholders want Jio-like fireworks</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>

Airtel poised to post improved ARPU and revenue growth – analysts remain bullish on the stock

<ul><li>One of India's top three telecom operators is crashing fast.</li><li>The share price fell another 9% on Friday after a shocking loss in the second quarter.</li><li>The ₹50,000 crore plus loss posted by Vodafone-Idea is the highest in the history of corporate India.</li></ul>One of India's top three telecom operators is crashing fast. The share price fell another 9% as trading opened on Friday, spooked by a shocking loss in the second quarter. The ₹50,000 crore plus loss posted by Vodafone-Idea is the highest in the history of corporate India. While the stock manage to recover from the lows it has already lost a lot of sheen. 
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 A day before Vodafone Idea posted India’s largest ever quarterly net loss of ₹50,000 crore, its stock had crashed 20%. The stock which has been taking a beating ever since Supreme Court gave a verdict which went against them in the aggregate gross revenue case, it has little to lose after yesterday’s loss announcement. The market capitalisation of Vodafone-Idea was just about ₹8,476 crore ($1.2 billion) before trading opened on Friday (November 15). That is barely a tenth of the ₹₹44,150 crore that it owed Department of Telecommunications which it has to pay p in three months. "We have accounted for the estimated liability of Rs 27,610 crore related to licence fee and Rs 16,540 crore billion related to spectrum usage charges up to September 30, 2019, including the interest, penalty and interest thereon of Rs 33,010 crore," the company said on a filing on the stock exchanges. Added to that, the British parent of the company Vodafone Plc also went deep into red because of its flailing India business. Two days back, the CEO of the parent Nick Read said that India business might be liquidated if the government does not offer any relief over the spectrum dues. In late October, both Bharti Airtel and Vodafone Idea have lost a decade old case on the definition of AGR dues. While the telecom companies had claimed that the definition should not include non-telecom earnings, DoT said it should. Supreme Court also agreed with DoT leading the sector into a fresh crisis, amongst the many it is battling. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/vodafone-idea-posts-a-historic-50000-crore-loss-over-agr-dues/articleshow/72064458.cms" data-type="tilCustomLink" target="_blank">Vodafone Idea has to pay ₹44,150 crore to DoT in 3 months -the liability that made it post a historic loss</a>

Vodafone-Idea is now a ₹3 stock after a shocking quarterly loss

New Delhi, Mar 15 () Bharti Airtel and Vodafone Idea Ltd, whose self-assessed dues to the government are less than half of what the Department of Telecommunications (DoT) estimates, must disclose workings highlighting areas of difference as minority shareholders deserve to know, an analyst report said. While Bharti Airtel has pegged its dues arising from a Supreme Court ruling that asked for non-telecom revenues to be included in calculating spectrum charges and licence fee at Rs 13,004 crore, the DoT puts the estimate at Rs 35,000 crore. In case of Vodafone Idea Ltd (VIL), the DoT is seeking over Rs 53,000 crore, while the company estimates its dues are Rs 21,533 crore. "While we appreciate the matter is still sub judice, once the legal chapter is over, Bharti and VIL could (and should) disclose their self-assessment workings highlighting the areas of difference versus the DOT math. Even as this isn't a statutorily mandated disclosure, we believe the minority shareholders deserve to know," Kotak Institutional Equities said in a March 9 report. Stating that there is a case for better disclosures on the math from both the DoT as well as the operators, it said a detailed explanation of the calculations post the closure of the legal proceedings is a must. "It would go a long way in inspiring confidence among the minority investors." VIL has so far paid Rs 3,500 crore out of its self-assessed liability of Rs 21,533 crore, while Bharti Airtel has paid Rs 13,004 crore to the government in two installments. It had also deposited an additional Rs 5,000 crore as an ad-hoc payment to cover any reconciliation differences. Similarly, Tata Teleservices has paid Rs 2,197 crore in dues, and more recently an additional Rs 2,000 crore to cover reconciliation differences, while the DoT estimates the liabilities to be about Rs 14,000 crore. "At some level, it is baffling that something as basic and critical as the base of revenues on which as much as 12-13% of sector revenues are paid as regulatory levies stayed a matter of dispute on principles and calculations more than two decades after NTP-1999 (the telecom policy that established revenue share as a mechanism) was introduced and implemented," Kotak said. It hoped that for the sake of minority investors, the telecom policy hereon leaves little room for such material disputes, and even when such disputes arise, they are settled (in or outside courts) in a more time-bound and reasonable manner. "Regulatory certainty, at the very least confidence in no regulatory shocks, is a must for healthy investor sentiments in any regulated sector," it noted. Total adjusted gross revenue (AGR) dues, including interest and penalty, as per the self-assessment exercise done by various telcos are 34.5 per cent of the DoT assessed provisional dues for Bharti, 40.6 per cent for VIL, and 16 per cent for TTSL. "We do not have sufficient details to be sure of why the divergence. We do believe, however, that operators would have been extra cautious in their math given the Supreme Court's tough stance on the matter," the report said. Kotak said Bharti and VIL made higher provisions for the dues in their Q2 FY20 earnings as they many not have had enough time post the Supreme Court's October 24, 2019 order to complete their self-assessments and adopted a conservative stance. "They extrapolated the DOT's then-latest demand and made conservative provisions. We note that the companies were providing for certain amounts in their books even though the case was in various courts for past many years and the telcos had been given a favorable verdict from the TDSAT earlier. "However, there is a large difference in the amounts, which is surprising. We suspect the telcos stayed confident of winning the case and never verified the earlier demands of the DOT or went into its detailed assessment," it added. ANZ ABMABM

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