A number of telecom firms are in troubled waters with over a massive Rs 1.47 lakh crore of adjusted gross revenue (AGR) dues to pay. These include top telcos -- Bharti Airtel and Vodafone Idea -- who owe about 60 percent.
The three companies are jointly liable to pay dues of over Rs 1 lakh crore, but they have informed the Department of Telecom (DoT) of making only partial payment, as per their representatives.
Vodafone Idea could be the largest bankruptcy ever in India as the inability to pay dues under the adjusted gross revenue (AGR) may push the Vodafone Plc and Aditya Birla joint venture in that direction.
Debt-ridden telecom operator Vodafone Idea on Saturday said it is assessing the amount that can be paid towards AGR dues, even as it flagged concerns over the continuation of its business.
As the sword of Damocles hangs over Vodafone Idea, uncertainty continues to mire the Indian telecom sector which has seen fall of several telcos such as Etisalat DB, Reliance Communications, Sistema Shyam and Aircel. As the sword of Damocles hangs over Vodafone Idea, uncertainty continues to mire the Indian telecom sector which has seen fall of several telcos such as Etisalat DB, Reliance Communications, Sistema Shyam and Aircel.
In an ultimatum, the Department of Telecommunications has ordered firms including Bharti Airtel and Vodafone Idea to clear dues before Friday midnight.
Shares of Vodafone Idea (VIL) on Friday tumbled nearly 19 per cent after the company reported widening of losses to Rs 6,438.8 crore in the third quarter of 2019-20. The scrip tanked 18.30 per cent to Rs 3.66 on the BSE.
Vodafone Idea on Thursday reported widening of losses to Rs 6,438.8 crore in October-December 2019 against Rs 5,004.6 crore in the year-ago period as the AGR dues-hit telco reeled under the impact of increased finance costs and higher depreciation of assets.
All postpaid users who are currently using a plan from Vodafone Idea will be moved to Vodafone Red plans. Users who are currently using a plan from Vodafone Idea will be moved to Vodafone Red plans.
Vodafone-Idea network in Bengaluru is down users are facing issues. It is suspected that there are issues with optical fibre cable network in the city. Users from Indiranagar, Electronic City, Kumaraswamy layout and Shantala Nagar appear to be the worst affected as the majority of the twitter reactions seem to have come from these areas.
On a day when the Supreme Court-mandated deadline for Bharti Airtel and Vodafone Idea to pay Rs 88,624 crore in past dues ended, the Department of Telecommunications (DoT) on Thursday decided not to take coercive action against defaulters during pendency of their appeals seeking relaxation in the apex court's order.
The Supreme Court Thursday dismissed the plea of Telecom majors, including Bharti Airtel and Vodafone Idea, seeking review of certain directions of the Supreme Court on recovery of past dues amounting to Rs 1.47 lakh crore from telecom service providers.
Vodafone Idea's mobile consumer base declined by around 3.63 crore to 33.63 crore in November, according to a source. The telecom operator had reported an increase of 1.89 lakh mobile customers on its network in October.
According to the data shared, highest financial disincentive of Rs 1.76 crore has been imposed on Vodafone Idea, which includes Rs 1.11 crore on account of call drop in Vodafone network and Rs 65 lakh on Idea, while minimum penalty of Rs 6.5 lakh was levied on Reliance Jio.
Vodafone Idea may raise over USD 2.5 billion from asset sales ahead of a January deadline to pay statutory dues. The company is said to be in talks to sell its optic fibre business to Brookfield Asset Management Inc and its datacentre to the Edelweiss Group.
Airtel and Vodafone Idea have brought back unlimited voice calling to other networks.
Vodafone-Idea may shut down soon. It is not a speculation. Vodafone Idea Limited Chairman Kumar Mangalam Birla has himself admitted to the plunging fortunes of the company. Birla on Friday said Vodafone Idea Ltd would shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order.
Vodafone Idea shares crashed about 9 per cent on Friday, spooked by company's chairman Kumar Mangalam Birla statement that the teleco "will have to shut shop" in the absence of government relief. Its stock was trading 8.89 per cent lower at Rs 6.66 apiece on the BSE.