- DoT to seek legal view on payment of first AGR portion amid varying interpretations of SC orderTelcos say apex court meant 10% of total AGR dues, but DoT says SC implied 10% of dues minus payments already made by the telecom companies.
- Vodafone Idea likely to set aside ₹5,000 crore yearly for AGR payments as priority funding"Payable AGR dues have to be planned and therefore those funds have to be first set aside. The biggest worry about fundraising is the ability to convince investors on the RoI (return on investment)," said a close adviser to the Aditya Birla Group (ABG).
- Telecom gear vendors, tower companies expect better prospects after AGR clarityThe AGR ruling of the nation’s top court coupled with VIL’s plans to go for an aggressive Rs 25,000-crore fundraise and stay competitive, has given fresh hopes to tower firms and network vendors that the telecom industry will sustain its three-player market structure, top industry executives said.
- Supreme Court set to pronounce AGR verdict today, Vodafone-Idea's fate hangs by a threadThe govt has sought a 20-year time frame for telcos to pay back their balance AGR dues, while the two most affected telcos- Vodafone Idea (over Rs50,400 crore balance dues) and Bharti Airtel (nearly Rs 26,000 crore balance) have sought 15 years. Vodafone Idea has warned it would be forced to shut shop if made to pay its dues at one go.
- DoT to SC: AGR paid by telcos so far not final; full calculations only after court orderThe DoT further said that adjusted gross revenue (AGR) is based on entire revenue generated by a telco and is not dependent only on revenue from spectrum. The government's latest affidavit will not bode well for Reliance Jio and Bharti Airtel who have insisted that they can not be forced to take on the AGR liabilities of bankrupt telcos they had shared and/or traded spectrum with.
- Voda Idea may struggle to sustain beyond 2 years, despite likely AGR relief: AnalystsVodafone Idea may still struggle to sustain its business in the long term given its weak cash flows.
- Government collects Rs 32,000 crore in AGR and statutory dues since SC's rapThe windfall will help govt bridge its deficit at a time when revenue collection has taken a hit due to slump.
- Vodafone could be a multibagger if it resolves its AGR problems in 2-3 years: Dipan Mehta‘It may not be the right time for telcos to increases ARPUs’
- Airtel doles out bonus but defers hikes as it awaits AGR verdictCompetitor Vodafone Idea is also unlikely to roll out hikes or bonus this year, having highlighted its financial stress in the Supreme Court recently, said another person. Reliance Jio is expected to give bonus in August, and may give increment to top performers later in the year.
- AGR order not meant to demand Rs 4 lakh crore from PSUs: Supreme CourtTop court asks govt to reconsider claims and tells telcos to submit guarantees against dues worth around Rs 1.7 lakh crore as per the October 2019 order before June 18. According to the proposal, recovery of AGR-related dues will be staggered over a maximum 20 years from the private phone companies.
- SC view on AGR payment timelines a breather for Voda Idea, Airtel: AnalystsAnalysts also don’t expect the apex court to allow repayment of such AGR dues over 20 years as suggested by the Department of Telecommunications (DoT), and instead expect a 10-15 year timeline to be set on grounds that the incumbent telcos may also be unable to furnish personal guarantees.
- DoT focuses on Covid, AGR on backburner for now“There have been no notices sent to telcos on their AGR payments or any discussions on it. Now, the focus of the Department of Telecommunications is on how to ensure smooth running of operations during the coronavirus pandemic,” said a government official who did not want to be identified.
- DoT AGR demands & telcos’ self-assessed figures need to be reconciled: EY expertPrashant Singhal, Telecom Expert at EY, says if the apex court does not accept the please and unless the government steps in to support, it will become very difficult for telcos to arrange funding at this stage
- Pay up, or else: How SC snuffed out telcos' last AGR hope"Exercise of self-assessment of AGR dues by telecom companies cannot be permitted even in wildest dreams," the court said in its observations during the hearing. "Our judgement on AGR dues is full and final, it should be followed in letter and spirit," the bench said.
- No further objections to be entertained, telcos must pay up AGR dues: SCThe Supreme Court said their order was clear and no further objections would be allowed against payable dues.
- Voda Idea pays Rs 3,354 crore more in AGR duesWith Monday's payments, total amount paid by Vodafone Idea to the Department of Telecommunications (DoT) will be about Rs 6800 crore, which will cover for its self assessed priciple portion of its dues.
- Vodafone Idea pegs dues payable to govt at Rs 21,533 cr, less than half of DoT estimateOn Friday, Vodafone Idea, in a statement said it has "filed its self-assessment of the AGR liabilities with the Department of Telecommunications. The self-assessment discloses the company's AGR liabilities to aggregate Rs 21,533 crores including a principal amount of Rs 6,854 crores for the period from FY 2006-07 to FY 2018-19 and interest up to February 2020."
- Vodafone Idea submits AGR self assessment, says total liabilities stand at Rs Rs 21,533 crore"... the company has today filed its self-assessment of the AGR liabilities with the Department of Telecommunications. The self-assessment discloses the Company's AGR liabilities to aggregate Rs.21,533 crore including a principal amount of Rs.6,854 crore for the period from FY 2006-07 to FY 2018-19 and interest up to February 2020," said Voda Idea.
- Tatas pay additional Rs 2,000 crore to government towards AGR dues: SourcesThe government estimated Tata's dues at about Rs 14,000 crore. The additional payment of over and above Rs 2,197 crore it has already submitted to the government, is aimed at covering any reconciliation differences, the source said.
- Airtel submits Rs 8000 crore more as AGR dues, including Rs 5,000 crore extra, subject to DoT reconciliationThe telco had earlier paid Rs 10,000 cr as AGR dues and it looks like the second tranche will be its final one.
- AGR-hit Vodafone Idea wants 7-8 times hike in mobile data tariffsVodafone 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.
- Not in sound financial state; can meet liabilities only with government support: Voda Idea on AGR duesWarning that it is "not in a sound financial state", Vodafone Idea said the company would be in a position to meet its liabilities only if the government initiates steps including allowing set offs for GST credit accumulated so far, and permitting staggered mechanism for payment of balance amount of interest, penalty, and interest on penalty.
- Bharti Infratel awaits SC verdict on AGR for merger with Indus TowersMajority owned by Bharti Airtel, Infratel is awaiting the outcome of the next hearing in the Supreme Court on the AGR issue on March 17, that will take stock of payments by telecom operators including Vodafone Idea. The latter is pressing for the deal to be implemented at the earliest, so that it can monetise its 7 per cent in the merged entity for Rs 4,500 crore.
- Govt dealing with AGR crisis, focussed on reviving sustainability of sector: Sunil MittalHe added that Airtel will pay up its balance AGR dues as per its calculations much before March 17, the next date of hearing in the Supreme Court in the case. Sources said Airtel may pay up as early as by end of February. It has already paid Rs10,000 crore to the government.
- Government to verify telcos' AGR math via test checks before March 17: SourcesThe 'test check' will happen for all telcom firms but will start with those claiming they have already made full and final settlement towards their statutory liabilities.
- Voda Idea likely to pay Rs 1,000 cr in AGR dues today: SourceSo far, DoT estimates show Vodafone Idea has to pay Rs 56,709.49 crore to the government, of which it paid Rs 2500 crore on Monday with assurance that it will pay another Rs 1,000 crore by this Friday. Vodafone Idea though estimates its AGR dues to be around Rs 23,000 crore, of which Rs 7,000 crore is the principle amount, and the rest interest and penalties.
- Telecom biz broken, Voda Idea on brink: Former finance secretary Subhash Chandra GargOn AGR, the former secy has advised the govt to offer telcos a one-time settlement scheme to pay the principal due amount as per the AGR definition. "Alternatively, appoint a Board for Vodafone-Idea by ousting current Board on the lines of action taken in case of ILFS and DHFL and secure a moratorium of some time on servicing of loans and government dues."
- Voda Idea tells SC it can pay Rs 2,500 cr now, SC grants no reliefThe apex court did not grant Vodafone Idea any relief, dealing a big blow to the telco which has to pay Rs 53,000 crore to the government as part of its AGR dues and informed on Saturday that it is assessing how much of AGR dues it "can" pay the government and plans to pay it in the next few days.
- DoT orders no coercive action on defaulting Airtel, Voda-Idea; Pradhan says non-telcos not liable"The Director of Licensing Finance Policy Wing has issued direction that concerned departments should not take any coercive action against the licensees in case they fail to comply with the Supreme Court order, until further orders," an official source told PTI.
- SC to hear plea of telecom service providers seeking time to pay AGR duesSupreme Court to hear the plea of telecom service providers seeking time to pay AGR dues amounting to Rs 1.47 lakh crore to the Govt.SC to hear plea of telecom service providers seeking time to pay AGR dues
- Lenders hope govt steps in to prevent AGR from becoming Voda Idea’s breaking pointThe banking sector’s total exposure to the telecom sector is around Rs 1.5 lakh crore.
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