Tuesday, 19 October 2021

Bharti Airtel and Vodafone's Idea Might Have Good News Coming In!

Bharti Airtel and Vodafone's Idea Might Have Good News Coming In!

Suppose SC agrees to plea, the telcos like Bharti Airtel and Vodafone's Idea ask DoT to recalculate the AGR dues. If calculation is done again.

It was built on the operators' inputs, verifying that the amount they had to pay more than what they owed will benefit the industry. But most of all, Vodafone's Idea will be helping out of the decision from the SC.

Airtel, Vodafone Idea, and Tata Teleservices had earlier sought the help of SC for the analysis of AGR pending. The telecom company argued that DoT had made various mistakes while figuring total AGR payment. As pointed by the telecom company, the government made a numerical error, including a double count of dues on a specific incident. Now, the SC may hear the case for the recheck of AGR dues by examining telecoms on July 19,

Bharti Airtel and Vodafone Idea Might Have Good News Coming Ingetty image

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Vodafone Idea will get Benefit the Most If SC Rules in Favour of the Telcos.
Suppose SC agrees to the appeal of telcos and asks the DoT to recalculate the AGR dues. If recalculation based on inputs provided by the operators proves that the amount they had to pay was more than what they owed will benefit the industry a lot. But most of all, Vodafone's Idea will be helping out of the decision from the SC.

Vi has a ton of debt on its shoulders. Because of the debt, the telco is unable to push aggressively on network expansion around the country. But if a certain percentage of the dues is released, it will help the operator a ton.

As per DoT's calculation, Vi had to pay Rs 58,400 crore as AGR dues, while the other operators, including Bharti Airtel and Tata Teleservices, had to pay Rs 43,980 crore and 16,798 crores.

But as per Vi's calculation, the telco only has to pay Rs 21,533 crore as AGR dues which are more than 50% less than the amount proposed by DoT. Even Airtel's self-assessment proved that the telco had to pay only Rs 13,004 crore instead of the DoT's suggested amount of Rs 43,980 crore.