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Tag: Vodafone-Idea

  • Paid licence payment dues for first quarter of 2021-22: Vodafone Idea

    Vodafone Idea Ltd (VIL) on Thursday stated it has paid licence payment dues for the primary quarter of 2021-22.
    The remark got here amid a report that the troubled telco — which is struggling to remain afloat — fell Rs 150 crore brief on cost of licence payment for the June quarter.
    “VIL has paid its licence fee dues for first quarter 2021-22,” a VIL spokesperson stated in response to an e-mail question by PTI.
    The assertion didn’t give out additional particulars.

    VIL is within the grip of an existential disaster, and the debt-ridden telco’s Q1 earnings and June quarter operational metrics introduced on Saturday had left analysts disenchanted.
    As per the Q1 report card launched by the telco, the whole gross debt (excluding lease liabilities and together with curiosity accrued however not due) as of June 30, 2021, of VIL stood at Rs 1,91,590 crore, comprising of deferred spectrum cost obligations of Rs 1,06,010 crore and adjusted gross income (AGR) legal responsibility of Rs 62,180 crore which might be because of the authorities.
    VIL posted a decrease consolidated lack of Rs 7,319 crore for the primary quarter ended June 30, 2021, towards a Rs 25,460 crore loss a yr in the past. The consolidated income from operations of Vodafone Idea declined by about 14 per cent to Rs 9,152.3 crore through the reported quarter from Rs 10,659.3 crore within the corresponding quarter of 2020-21.
    Billionaire Kumar Mangalam Birla just lately stepped down as chairman of Vodafone Idea Ltd, inside two months of providing handy over Aditya Birla Group’s stake within the telco to the federal government in a bid to avert a disaster for the agency.
    Last week, Vodafone Idea filed a evaluation petition within the Supreme Court after the apex court docket dismissed its plea for rectification of the alleged errors within the calculation of adjusted gross income (AGR) associated dues.
    In its evaluation petition, VIL has stated it’s “a travesty of justice” that the corporate is restrained from questioning the arithmetical errors/omissions that are going to price it about Rs 25,000 crore (Rs 5,932 crore of principal plus curiosity, penalty and curiosity on penalty).
    Vodafone Idea petition has stated its contentions have been rejected by the order below evaluation and added that this denial may outcome within the firm going below and its about 27.3 crore subscribers being left “high and dry”.

    Other fallouts embrace lack of funding within the enterprise and an impression on livelihoods of staff, in addition to distributor, retailers, and retailer employees, the corporate stated within the petition.
    During an earnings name earlier this week, Vodafone Idea CEO Ravinder Takkar stated the corporate is hopeful that the federal government will provide needed assist to deal with structural points within the sector and had emphasised that ground pricing, even in an interim method, may assist.

  • Analysts air considerations over weak vitals of Vodafone Idea submit Q1 outcomes, say reduction measures essential

    Analysts have sounded an alarm over the weak vitals of Vodafone Idea (VIL) submit its first quarter outcomes that indicated subscriber losses, ARPU declines, quick deteriorating cashflow and balance-sheet considerations, as a number of market watchers famous that authorities or regulatory assist is ‘critical’ for its viability amid upcoming fee obligations.
    In its be aware ICICI Securities stated it sees “high risk and huge concern for VIL” and that within the wake of rising uncertainties, it has put VIL’s estimates, score and goal value under-review till additional readability.
    “We believe existing operation is unlikely to meet upcoming payouts, and risk of default cannot be ruled out, the much anticipated tariff hike/s and capital infusion have been insufficient,” it stated flagging the quick deteriorating cashflow and rising liabilities.
    The outcomes point out that Vodafone Idea continues to face structural headwinds, BofA Securities stated.

    “Unless government steps in to aid, we see risks of India turning to be a two player market,” it stated.
    The risk-reward is “unfavourable” given restricted readability on tariff hike and funding, BofA Securities stated in its report.
    Vodafone Idea misplaced 12.4 million subscribers in Q1 FY22 (versus 2 million loss in 4Q FY21) on account of lockdown and restricted retailer timings, it cited.
    VIL’s Q1 outcomes had been under estimates and had been impacted by Covid-19, UBS stated observing that the telco continues to lose market share.
    “While the company had started showing signs of stability in previous quarters, especially on the 4G front, this was reversed during the quarter as a result of the impact of second wave of Covid,” UBS stated.
    Consequently, Average income Per User (ARPU) declined by three per cent sequentially from Rs 107 to Rs 104.
    “ARPU still remains meaningfully lower than Bharti and Jio’s ARPU of Rs 146 and Rs 138, respectively,” UBS report famous.
    The firm stays in a “critical” place by way of liquidity, with FY22 money flows (even assuming minimal or no capex) unlikely to be enough to satisfy upcoming reimbursement obligations, UBS opined.
    Progress within the fund elevating train and potential reduction package deal from the federal government are key, it added.
    Goldman Sachs be aware cautioned: “We note that the company has large repayments due starting December 2021, and at the current EBITDA (earnings before interest, taxes, depreciation, and amortisation) run-rate, we estimate Vodafone Idea could have a Rs 238 billion (USD 3.2 billion) cash shortfall until April 2022.”
    Vodafone Idea — which is struggling to remain afloat — posted its Q1 earnings on Saturday. The whole gross debt (excluding lease liabilities and together with curiosity accrued however not due) as of June 30, 2021 of VIL stood at Rs 1,91,590 crore, comprising of deferred spectrum fee obligations of Rs 1,06,010 crore and adjusted gross income (AGR) legal responsibility of Rs 62,180 crore which can be as a result of authorities.
    The debt-ridden telco posted a decrease consolidated lack of Rs 7,319 crore for the primary quarter ended on June 30, 2021, towards Rs 25,460 crore loss in the identical quarter a 12 months in the past.
    The consolidated income from operations declined by about 14 per cent to Rs 9,152.3 crore in the course of the reported quarter from Rs 10,659.3 crore within the corresponding quarter of 2020-21.
    Billionaire Kumar Mangalam Birla not too long ago stepped down as chairman of Vodafone Idea Ltd, inside two months of providing at hand over Aditya Birla Group’s stake within the debt-laden telco over to the federal government, in a bid to avert a disaster for the troubled telecom firm.
    Last week, Vodafone Idea filed a evaluate petition in Supreme Court, after the apex courtroom not too long ago dismissed its plea for rectification of the alleged errors within the calculation of adjusted gross income (AGR) associated dues.

    In its evaluate petition, VIL has stated it’s “a travesty of justice” that the corporate is restrained from questioning the arithmetical errors/omission that are going to price it about Rs 25,000 crore (Rs 5,932 crore of principal plus curiosity, penalty and curiosity on penalty).
    Vodafone Idea has stated that its contentions have been rejected by the order beneath evaluate and added that this denial may consequence within the firm going beneath and its about 27.3 crore subscribers being left “high and dry”. Other fallouts embrace lack of funding within the enterprise and an affect on livelihoods of staff, in addition to distributor, retailers, and retailer workers, the corporate has stated.

  • Viability of telecom sector: Govt prone to push for flooring worth

    TO ENSURE sectoral viability, the federal government is prone to push for a flooring worth for companies offered by telecom firms and in addition contemplate different choices similar to curiosity free moratorium on spectrum funds and encashment of financial institution ensures.
    Officials within the Department of Telecommunications (DoT) stated a flooring worth, which can even be set informally, will act like a help mechanism akin to the FRP (honest and remunerative worth) for the sugarcane business. “The floor price could be hiked by up to Rs 30 per user,” the official stated.
    The DoT and the Finance Ministry are stated to have the same opinion on the ground worth proposal, however they might want to carry the telecom regulator on board. The Telecom Regulatory Authority of India (Trai) has up to now not entertained the thought of a flooring worth for telecom companies.
    Officials stated the proposal to permit moratorium on spectrum funds and encashment of ensures are, nevertheless, being opposed inside sections of the federal government.
    Spectrum utilization prices for telecom firms are vital — in 2020-21, the DoT obtained Rs 5,205 crore and a further Rs 2,500 crore following the Supreme Court judgement on Adjusted Gross Revenues. Bharti Airtel and Vodafone India (Vi) present financial institution ensures of about Rs 6,000 crore a yr to the DoT.
    The DoT has, in discussions with the Finance Ministry and different departments, proposed that loss-making Vi be allowed to transform its debt to fairness, senior authorities officers stated. Banks are stated to be on board with the plan, they stated.

    “Even if we allow a moratorium on spectrum payments, or say the company’s (Vi’s) debt is converted into equity, the fact remains that its net worth is negative. The company needs liquid cash to run operations and survive. This is possible only when it generates money from users,” the official stated.
    Vi had a mean income per consumer (ARPU) of Rs 107, which is considerably decrease than Bharti Airtel’s Rs 145 and Reliance Jio Infocomm’s Rs 138 as of March 2021. The firm has misplaced practically 13 crore prospects over the past three years. At the tip of March 2021, Vi had roughly 27 crore prospects. Reliance Jio and Bharti Airtel have 43.1 crore and 34.8 crore prospects, respectively, as on May 31 this yr.

    ExplainedFloor worth, why and why notA flooring worth basically prevents firms from undercutting one another throughout varied companies. While the federal government might contemplate it as a method to make sure viability of the sector, the regulator sees it by means of a unique lens — of whether or not such synthetic props inhibit competitors.

    On the chance of changing Vi’s debt into fairness, a DoT official stated, “No options are off the table right now. There will not be much hit for the customers (even if Vi were to close down) as they can easily shift (to other networks). The government’s dues are at stake. We are looking at what best we can do to take care of all stakeholders,” a senior DoT official stated.
    The complete dues owed by Vi simply to the DoT are in extra of Rs 1.5 lakh crore — Rs 58,000 crore in adjusted gross revenues and Rs 96,000 crore in deferred spectrum funds. The firm individually owes Rs 23,000 crore to banks and different lenders.
    Several telecom analysts are of the view the federal government has no choice however to “save the company if it wants to ever recover its dues”.
    “They can not just let the company slip to insolvency because of the huge dues. Ideally, they should have been more vigilant about it, but with the Supreme Court judgment coming in 2019 when the sector’s health was already poor, not much could have been done,” an analyst stated.
    The discussions for aid to the telecom sector have gained tempo after Kumar Mangalam Birla, former non-executive Chairman and Director of Vodafone Idea (Vi), wrote to the Central authorities in June providing to “hand over” his 27 per cent stake within the firm to any public sector, authorities, or home monetary entity or to some other agency that the federal government might imagine match, to maintain Vi going.
    The June letter, nevertheless, was not the primary time Birla had raised the request for a bundle from the federal government. In December 2019, he had, following the Supreme Court’s AGR judgment, stated Vodafone Idea must “shut shop” if no aid was forthcoming from the federal government.
    In a bid to stay aggressive, telecom gamers have progressively undercut one another by slashing tariffs. The tariff wars intensified since 2016, after the entry of Reliance Jio Infocomm in to the telecom market, which first eliminated knowledge prices after which turned voice calls free.

    After a bruising three years, it was solely in December 2019 that the foremost telecom gamers, Vi, Bharti Airtel and Reliance Jio, raised tariffs concurrently with out days of one another. There have, nevertheless, not been any main tariff hikes by the telcos since then.
    For some time, Vi has been unsuccessfully making an attempt to boost funds of as much as Rs 25,000 crore or usher in a strategic companion. In his June 7 letter, Birla made a point out of the corporate’s efforts to boost funds and stated all non-Chinese traders they’d talked to up to now had requested to be assured that the Indian authorities needed to “have a three-player telecom market”.

  • Conversion of Vodafone Idea debt into fairness an choice: Banks to DoT

    Conversion of debt of the pressured telecom participant Vodafone Idea Ltd (VIL) into fairness may very well be an choice to emerge out of the disaster, lenders led by State Bank of India (SBI) have prompt to Department of Telecommunications (DoT).
    DoT had referred to as senior financial institution officers on Friday to debate the stress within the telecom sector arising out of the Supreme Court order final month on the adjusted gross income (AGR)-related dues payable by telecom majors, together with Vodafone Idea and Bharti Airtel, sources mentioned.
    The high courtroom has given a time interval of 10 years to telecom service suppliers struggling to pay Rs 93,520 crore of AGR-related dues to clear their excellent quantity to the federal government.

    Bankers additionally instructed senior DoT officers that conversion of debt of VIL into fairness is an choice however not a sustainable one, sources mentioned, including that since VIL had not defaulted on its money owed to date, they can not take any motion but.

    In a bid to maintain an organization a going concern, banks have used the choice of changing debt into fairness in lots of stress circumstances prior to now.
    Capital infusion by promoters is the best choice within the given situation, sources mentioned quoting bankers.

    The UK-based Vodafone has a forty five per cent stake whereas Aditya Birla Group owns a 27 per cent stake within the VIL.
    Lenders, each private and non-private, stare at a lack of Rs 1.8 lakh crore in case VIL collapses. A big a part of the loans to the lender is within the type of ensures with public sector banks having a lion’s share of the debt.
    Among the non-public sector lenders, Yes Bank and IDFC First Bank could also be impacted essentially the most. As a precursor, some non-public lenders with a funded publicity have already began making provisions.

    For instance, IDFC First Bank has marked the account of VIL as pressured and has made provisions of 15 per cent ( Rs 487 crore) towards the excellent publicity of Rs 3,244 crore (funded and non-funded).
    “This provision translates to 24 per cent of the funded exposure on this account. The said account is current and has no overdues as of June 30, 2021,” the lender had mentioned in its Q1 FY’22 investor presentation, referring to the account as “one large telecom account”.
    According to official knowledge, VIL had an AGR legal responsibility of Rs 58,254 crore out of which the corporate has paid Rs 7,854.37 crore and Rs 50,399.63 crore is excellent.
    The firm’s gross debt, excluding lease liabilities, stood at Rs 1,80,310 crore as of March 31, 2021. The quantity included deferred spectrum fee obligations of Rs 96,270 crore and debt from banks and monetary establishments of Rs 23,080 crore aside from the AGR legal responsibility.
    In a backdrop of such massive liabilities, each the promoter Vodafone (45 per cent stake) and Aditya Birla Group (27 per cent stake) expressed their lack of ability to usher in further capital.
    Writing a letter to Cabinet Secretary Rajiv Gauba in June, Aditya Birla Group Chairman Kumar Mangalam Birla mentioned traders usually are not prepared to put money into the corporate within the absence of readability on AGR legal responsibility, ample moratorium on spectrum funds and most significantly ground pricing regime being above the price of service.

    “It is with a sense of duty towards the 27 crore Indians connected by VIL, I am more than willing to hand over my stake in the company to any entity-public sector/government /domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern,” Birla mentioned within the letter.
    Birla has give up the put up of non-executive chairman put up of the floundering telecom big final week.

  • AGR case of telecom majors: A timeline

    The Supreme Court on Friday dismissed the functions filed by telecom majors, together with Vodafone Idea and Bharti Airtel, towards alleged errors in calculation within the determine of Adjusted Gross Revenue (AGR) associated dues payable by them.
    Pronouncing the order, a bench headed by Justice L Nageswara Rao stated, “All the miscellaneous applications are dismissed.”
    The Supreme Court, on Monday, had reserved its order within the AGR case whereby Vodafone Idea, Bharti Airtel and Tata Telecommunications sought rectification of errors by the Department of Telecommunications (DoT) within the calculation of the dues. Last September, the apex courtroom had reaffirmed the dues payable by these telecom firms to the DoT.
    Here is a timeline of the case:
    2005: Cellular Operators Association of India transfer the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) difficult the definition of AGR. While the DoT stated that AGR contains all revenues (prior reductions) from each telecom and non-telecom companies, the businesses argued that AGR ought to solely comprise the income from core telecom companies.

    2015: The TDSAT guidelines that AGR contains all revenues besides capital receipts and income from non-telecom sources akin to hire, dividend, curiosity, revenue on the sale of fastened property and miscellaneous earnings.
    October 2019: SC upholds the DoT’s definition of AGR and stated for the reason that licensee had agreed to the migration packages, they had been liable to pay the dues, the penalty on dues, and the curiosity on penalty as a consequence of delay in funds. The high courtroom had then given the telcos three months to clear their AGR dues.
    November 2019: Telecom firms search a assessment of the Supreme Court’s earlier ruling on the matter.
    January 2020: Telecom firms miss the deadline for the fee of their AGR dues.
    July 2020: Supreme Court declares that there will be no adjustment of dues and that the AGR calculation is last, confirming DoT calls for of 1.56 lakh crore.
    September 2020: The Supreme Court declares that the telecom firms must pay the AGR dues inside 10 years.
    January 2021: Bharti Airtel strikes an utility earlier than the Supreme Court searching for a modification of the AGR dues. The utility seeks correction of the arithmetic ‘errors’ within the calculation of the dues.
    July 19, 2021: Vodafone Idea joins Airtel’s plea. Supreme Court reserves judgement on the matter, seeks Central authorities response in Telecom firms plea alleging errors within the computation of AGR dues.
    July 23, 2021: The Supreme Court dismisses the functions filed by telecom majors, together with Vodafone Idea and Bharti Airtel, towards alleged errors in calculation within the determine of Adjusted Gross Revenue associated dues payable by them.

  • Rival telcos’ deft moves in spectrum auction may compound Vodafone Idea’s woes: Report

    The positioning of Vodafone Idea – which picked up modest 11.80 MHz spectrum – could potentially “worsen” as rival telcos will be able to boost their coverage and capacity after buying additional radiowaves in the just-concluded auctions, according to a report.
    Vodafone Idea has acquired spectrum to cover minor gaps in five circles for Rs 1,993.4 crore, while Bharti Airtel shelled-out nearly Rs 18,700 crore for 355.45 MHz radiowaves and Reliance Jio a whopping Rs 57,123 crore for 488.35 MHz spectrum.
    India’s first auction of telecom spectrum in five years ended on Tuesday with Rs 77,814.8 crore of airwaves being acquired by telcos and billionaire Mukesh Ambani’s Reliance Jio spending the most.

    “VIL’s positioning may possibly worsen as other operators will be able to enhance their coverage and capacity further post acquisition of additional spectrum in the recent round,” a note by Kotak Institutional Equities said.
    The deft moves by Bharti Airtel and Reliance Jio in shoring up their spectrum holding will allow the two telcos to enhance their user experience further, “compounding woes for VIL”.
    Airwaves come in different bands which support different propagation characteristics for transmission of voice and data. For instance, lower bands like 800 MHz and 900 MHz support a good indoor coverage while higher bands like 2300 MHz have a good carrying capacity.
    The airwaves are also sold in quantities measured as MHz. The auctions allows companies to use government-owned airwaves for carrying signals for data and voice for a particular period of time.
    Reliance Jio Infocomm has acquired the right to use spectrum in all 22 circles or zones across India, in the auctions. Jio has bagged spectrum in bands such as 800 MHz, 1800 MHz and 2300 MHz, and its spectrum footprint is up by 55 per cent to 1,717 MHz.
    As per the telecom department data, Vodafone Idea (VIL) has bought 5.8 MHz spectrum in 900-band and 6 MHz in the 1800-band. It has acquired spectrum in 900 band for Rs 1,274 crore and 1800 band for Rs 719 crore.
    In contrast, Jio, in the 800 MHz band, has acquired spectrum for Rs 34,491 crore, in 1800 MHz for Rs 12,461 crore, and in 2300 MHz for Rs 10,170 crore. Bharti Airtel has paid maximum for 900 MHz band (Rs 6448 crore), 1800 MHz (Rs 5,816 crore), 800 MHz (Rs 3,008 crore), 2300 MHz (Rs 3,070 crore), 2100 MHz (Rs 355 crore), Telecom Secretary Anshu Prakash had said earlier this week.
    Kotak report said, “Bharti and Jio picked up a significant share of spectrum on offer across key bands to cover up for the bandwidth expiring later this year, while also preparing to expand their coverage as well as capacity across the country. On the other hand, VIL increased its holding marginally on an already large spectrum portfolio”.
    VIL anyway has a large spectrum holding, which is comparable to the now expanded portfolios of Bharti and Jio.

    “However, VIL’s capacity has been lagging behind other operators due to limited investments in network infrastructure given their high leverage and constrained balance sheet,” it pointed out.

  • Vodafone-Idea prospects will be unable to make use of 3G sim,

    Vodafone-Idea goes to take many huge steps this yr. If you’re a buyer of Vi or need to port your quantity, then learn this information as soon as. Vi goes to make many main adjustments within the coming days. Vi has determined that 3G cell service can be discontinued within the coming days. The firm has now determined to shift all its companies to 4G and 5G networks. The firm’s MD and CEO Ravindra Collision says that by the top of 2022, 3G companies from throughout the nation can be utterly shut down. According to the report, the corporate will quickly launch 5G companies within the nation. The firm has began preparations for this tremendous quick community throughout the nation. Vi will rollout the 5G know-how throughout the nation after the public sale of Spetrum by the central authorities.

  • Vi web loss narrows to Rs 4,540 crore

    Vodafone Idea (Vi) has narrowed its web loss to Rs 4,540.8 crore for the October-December 2020 quarter, primarily because of one-time achieve of Rs 1,697 crore, which incorporates good points made on sale of stake in Indus Towers. The firm had reported a web lack of Rs 7,203.4 crore within the previous July-September interval.
    The firm’s income stood at Rs 10,894.1 crore for the interval, nearly a per cent greater than Rs 10,791.2 crore within the previous quarter. The Ebitda elevated by 3.22 per cent to Rs 4,286.2 crore towards Rs 4,152.4 crore within the previous quarter. The Ebitda margin additionally improved to 39.3 per cent within the October-December quarter as in comparison with 38.5 per cent within the previous quarter.
    The firm mentioned launching of unified model Vi has began to yield outcomes and varied subscriber KPIs (key efficiency indicators) have proven enchancment. The subscriber churn has come right down to 2.3 per cent as in comparison with 2.6 per cent within the previous quarter. The whole subscribers of the corporate stood at 269.8 million in Q3 towards 271.8 million in Q2, a decline of two million. The firm had misplaced 8.1 million subscribers in Q2. The common income per consumer (Arpu) improved to Rs 121 for the reported interval as in comparison with Rs 119 within the previous quarter. The Arpu although stays a lot decrease than Bharti Airtel and Reliance Jio. Other working metrics like knowledge utilization was additionally decrease than competitors. Vodafone Idea’s common knowledge consumption per consumer monthly stood at 12.2 GB, decrease than 12.9 GB of Jio and 16.7 GB of Airtel.
    At the tip of the quarter, the 4G subscriber base stood at 109.7 million (vs 106.1 million in Q2), an increase of three.6 million within the interval. FE

  • Jio, Airtel, Vodafone Idea apply for collaborating in spectrum public sale

    Image Source : PTI Jio, Airtel, Vodafone Idea apply for collaborating in spectrum public sale
    Telecom operators Bharti Airtel, Reliance Jio and Vodafone Idea on Tuesday submitted purposes to take part within the Rs 3.92 lakh crore spectrum public sale scheduled to start out from March 1, in response to official sources. This spherical of public sale will probably be held for two,251.25 Megahertz (MHz) in seven frequency bands — 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz 2100 Mhz, 2300 Mhz and 2500 Mhz — at a cumulative base worth of Rs 3.92 lakh crore.
    “Bharti Airtel, Reliance Jio and Vodafone Idea have submitted applications (for the spectrum auction),” an official supply advised PTI.
    Bharti Airtel’s 12.4 MHz of spectrum within the 900 MHz band and 47 MHz within the 1800 MHz band, in addition to Reliance Communications’ 44 MHz of spectrum within the 800 MHz band will come up for renewal.
    Vodafone Idea must renew 6.2 MHz of spectrum within the 900 MHz band and 38.2 MHz within the 1800 MHz band.
    Some consultants have been of the view that the loss-making telecom firm Vodafone Idea (VIL) might not take part within the public sale for renewal of spectrum in some circles.

    Telecom operators can get spectrum within the 900 megahertz band, getting used for 4G companies, within the upcoming public sale for lower than half the value in a number of circles in comparison with the quantity paid by telecos in earlier auctions.
    The base worth within the 800 Mhz band has been lowered as a result of spectrum on this band remained unsold in 15 of the 19 circles that have been put for public sale in 2016. Bids have been acquired just for radiowaves in Gujarat, Punjab, Rajasthan and UP East.
    According to ICICI Securities, the ultimate reserve worth for 800 MHz spectrum within the upcoming public sale is eighteen.5 per cent decrease than the October 2016 public sale worth, which ought to profit the related operators.
    The base worth of spectrum in 1800 Mhz band and 2300 Mhz band has been mounted 14.5 per cent and 17.5 per cent increased than the October 2016 base worth, in response to ICICI Securities.
    The Department of Telecom has additionally elevated base worth of 700 Mhz in North East and Jammu and Kashmir circles to Rs 34 crore in comparison with Rs 30 crore really useful by the telecom regulator Trai.
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  • Vodafone Idea strikes SC over ‘errors’ in DOT’s AGR calculation

    Image Source : TWITTER Vodafone Idea strikes SC over ‘errors’ in DOT’s AGR calculation
    A day after Bharti Airtel approached the Supreme Court over the evaluation of adjusted gross income (AGR) calculations, Vodafone Idea additionally moved the highest court docket searching for “correction” within the AGR evaluation.

    The petition filed by the telco on Thursday mentioned that funds made by the corporate haven’t been accounted for within the AGR calls for issued by the division. Further, it additionally mentioned that double counting has been achieved on some income objects within the AGR calls for.

    It additionally mentioned that deduction has not been given for PSTN associated name prices and for roaming prices truly paid to different operators.

    “The excess demand upon the applicant which is attributable to these error amounts to Rs 5,932 crores of principal amount, which would have an overall impact of over four times on the total principal amount aforementioned due to the imposition of interest, penalty and interest on penalty,” the petition mentioned.

    In September, the apex court docket allowed telecom operators 10 years to pay up AGR dues.

    Vodafone Idea’s whole AGR dues as per DoT stood at Rs 58,254 crore, whereas the dues in response to the corporate stood at Rs 21,533 crore.

    The firm has paid AGR dues price of Rs 7,854 crore thus far.

    Shares of the telco moved larger on the event. Around 1.08 p.m. Vodafone Idea shares on the BSE had been buying and selling at Rs 12.17, larger by 1.67 per cent from its earlier shut.

     
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