The government on Wednesday asked Bharti Airtel, Vodafone Idea and other telecom companies to pay remaining AGR dues as per the Supreme Court order without further delay, according to sources.
Vodafone Idea, Bharti Airtel and Reliance Jio on Tuesday paid cumulative over Rs 6,000 crore to the government towards deferred spectrum dues while Tatas said it has deposited another Rs 2,000 crore for ad hoc statutory liabilities.
Vodafone Idea has demanded fixing minimum tariffs for mobile data at Rs 35 per GB, around 7-8 times of current prices, and for calls at 6 paise per minute along with monthly charges from April 1 to enable it pay statutory dues and make its business sustainable.
Telecom firm Vodafone-Idea Thursday said that it is not a "sound financial state" and sought help from the government over the pending AGR dues. The troubled company has written to the telecom department expressing its inability to pay full AGR dues unless the government takes urgent measures.
While smartphone brands like iQOO and Realme are ready with 5G smartphones, we are still waiting for Jio, Airtel and Vodafone Idea to get ready for the future.
Telecom tariff hikes from December last year has led to consolidation in the market-leading to gross subscriber fall, said a report from Motilal Oswal. After declining by 2.1 million in November 2019, the number of declines in active subscribers increased again by 3.5 m in December 19.
Shares of Vodafone Idea fell nearly 12 per cent on Monday after Bharti Infratel extended the deadline for its merger with Indus Towers by two more months to April 24.
Bharti Airtel Chairman Sunil Mittal on Thursday met Telecom Minister as AGR issue looms large on his company. After his meeting, Mittal described AGR crisis as "unprecedented" for Indian Telecom industry. Airtel has until March 17 to pay Rs 35,600 crore to the government as part of (Adjusted Gross Revenue) payment.
Telecom major Vodafone Idea's survival is under serious doubt as the company's ratings have been downgraded by three agencies in the span of just two days. After India Ratings, Brickwork Ratings, Crisil on Thursday downgraded Vodafone Idea's rating on non-convertible debentures of Rs 3,500 crores.
Telecom firm Vodafone Idea on Thursday paid Rs 1,000 crore to the Department of Telecommunications (DoT) towards its statutory dues. This was in addition to the part-payments Vodafone-Idea had made previously.
Former finance secretary Subhash Chandra Garg on Wednesday said the government should offer a one-time settlement scheme to the telecom companies to pay the principal due amount as per the AGR definition and waive the penal interest and penalties.
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.
Vodafone Idea Chairman Kumar Mangalam Birla met telecom secretary Anshu Prakash on Tuesday amid raising concerns that the company may head to insolvency if the government takes coercive action against the telecom companies for failing to pay AGR dues.
Shares of Vodafone Idea on Tuesday settled over 11 per cent down in the wake of continuing business uncertainty overpayment of statutory dues.
Shares of Vodafone Idea on Tuesday tanked over 16 per cent due to rating downgrade on AGR dues and other issues of the company. On the BSE, the stock plunged 14.91 per cent to trade at Rs 2.91 in early market hours. Later it was trading with a loss of 8.77 per cent at Rs 3.12.
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.
With massive Rs 1.47 lakh crore of AGR dues pushing telecom firms to the brink, Reserve Bank of India Governor Shaktikanta Das on Monday said the central bank is "very closely monitoring" the fallout of the crisis on lenders by way of a default, if any, by telecom players.
Vodafone Idea and Tata Group on Monday made part payment of about Rs 2,500 crore and over Rs 2,190 crore, respectively, to the telecom department towards statutory dues.
The Supreme Court Monday rejected telecom firm Vodafone's proposal to pay Rs 2,500 crore by the end of the day and Rs 1,000 crore by Friday against Adjusted Gross Revenue (AGR) dues, while also refusing its plea that no coercive action be taken against it.
Airtel on Monday paid Rs 9,500 crore and Rs 500 crore on behalf of Bharti Hexacom Ltd. to the Department of Telecom towards adjusted gross revenue (AGR), the company has said in a statement. Telecom operators Bharti Airtel, Vodafone Idea and Tata Tele are jointly liable to pay dues of over Rs 1 lakh crore.
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