The Indian government has approved a four-year moratorium on telcos’ adjusted gross revenue (AGR) dues; Vodafone-Idea is the biggest beneficiary of this decision. The relief will help Vodafone-Idea stay afloat, while its rivals like Bharti Airtel and Reliance Jio will use the opportunity to strengthen their positions.
Last year the Indian supreme court made it mandatory for telecom providers to pay their pending dues to the government. According to the Department of Telecommunications, license fees of INR920bn ($12.5bn) and usage fees of INR410bn ($5.6bn) were due from these three service providers. Telecom firms had already paid 10% of their pending dues by March 31, 2021, and the remaining amount was to be paid over 10 years, with the first installment due by March 2022.
Vodafone-Idea lags Bharti Airtel and Reliance Jio with a 23% share of the country’s mobile subscriptions in 2020, according to GlobalData forecasts. It has lost more than a third of its 387 million subscribers in the last three years.
Of all India’s telecom firms, Vodafone-Idea is facing the most significant challenges. It needs to clear INR500bn ($6.8bn) in statutory dues to the government. The company is in crisis and fighting for survival due to a lack of funds, as they are struggling to generate enough cash from the business.
Benefits to Vodafone-Idea
The four-year moratorium on dues means about three years of extra time post-5G launch, expected in 2022. It should give Vodafone-Idea sufficient time to restructure, transform, and overcome its current business challenges. At the same time, Bharti Airtel and Reliance Jio will improve their potential cash flow to participate in the 5G airwave sale.
100% foreign direct investment (FDI) through the automatic route, which was earlier limited to 49%, means foreign companies don’t need government approval to invest. The FDI change will generate large-scale investments into the sector, including for 5G technology deployment. Vodafone-Idea should attempt to derive maximum benefit from this potential investment, stabilizing its position as the third-largest telecom provider in the country.
The government has now redefined AGR to exclude non-telecom revenues of telecom companies. Lower AGR means lower related charges. This move will help improve the overall financial health of the debt-ridden telecom sector and will be especially helpful to Vodafone-Idea, which will gain maximum relief on its debt.
The newly-approved structural and procedural changes would keep Vodafone-Idea going, stabilizing its business with improved cash flow. But it won’t be enough for them to survive in the market. The company could opt for an equity conversion for interest payout during the moratorium period.
Is it accurate to say that you are additionally pondering about that hacking sound when you dial somebody's number?
The Indian telecom administrators Airtel, Reliance Jio, BSNL, MTNL, Vodafone Idea, and Tata DoCoMo have begun playing the jingle that targets instructing individuals on how they can be sheltered in the midst of the Coronavirus episode in India.
The jingle begins with a hacking sound that helps you to remember one of the early indications when the 2019-nCov infection hits an individual.
It proceeds to enlighten you regarding the preventive estimates that ought to be taken.At first, BSNL and Reliance Jio started the mindfulness crusade by actualizing the guest tune for their clients.
As per a tweet by ANI, the mindfulness battle is being controlled by the administration so as to check the frenzy among residents and instruct them on how they can shield themselves from getting tainted.The Novel Coronavirus (2019-nCov) is an incapacitating infection that causes a sickness called COVID-19 in people and, even, a few creatures.
Its flare-up started in the city of Wuhan in China and, soon, spread all around.
Vodafone Idea’s march into the precipice of bankruptcy is unique in India's corporate landscape considering there is hardly anyone who’s taking pleasure (directly or vicariously) in this unfortunate and possibly soon-to-be demise.With gross debts mounting over ₹1.6trn ($22.1bn), continuing stock erosion and rising calls for divestment and bailouts from promoters and executives, Vi's struggle for survival gets tougher with each passing day.How did this happen?
And more importantly, is there any way the company can survive this?Find out by clicking on the link below.https://transfin.in/the-rise-and-fall-of-vodafone-idea
The Supreme Court on Friday dismissed the petition of telecom companies, refusing to re-calculate the outstanding Adjusted Gross Revenue (AGR) dues demanded by the Department of Telecommunications (DoT).The Special Bench of Justices L. Nageswara Rao, S. Abdul Nazeer and M.R.
Shah pronounced the order.On July 19, the Supreme Court had reserved its verdict on the petitions of Vodafone Idea, Bharti Airtel and Tata Teleservices.Read More...
Earlier in the week, Airtel revised its Rs 199 prepaid decide to give added benefits to pick users.
Its Rs 199 prepaid plan which usually offers 1GB daily data for twenty-four days with unlimited calls and SMS benefits was giving some users 35 days validity alongside 1.5GB daily data.
This plan isn’t for all users and should be available to users who might not are recharged recently or subscribe to Smart Recharge packs.Now, Vodafone Idea seems to supply an identical benefit with its Rs 199 prepaid decide to select users.
The plan offers 1GB daily data for twenty-four days to users.
The users also get unlimited calls and 100 SMS per day with a further advantage of Vi movies and television.
First reported by Telecom Talk, the telco is now giving 1.5GB daily data alongside 28 days validity.
Known as Vodafone Idea Limited, Idea Cellular Network is the wing of Aditya Birla Group which was commenced in the year 1995 with the prime focus to offer efficient, reliable and affordable mobile services across India.
Soon after the merger with Vodafone, Idea Cellular Network has garnered the position of India’s largest Telecom Operator delivering excellence in mobile services across India.
It is dedicated in bridging the mile’s gap between the Indians by offering the technology oriented and better alternatives affordable Idea Prepaid Mobile Recharge Offers.
You can browse from the list of all the available plans and services including talktime offers, data packs, roaming packs, traffic plans and more.
1499 – 1GB of 4G Data daily for 365 days with 100 SMS, free roaming and unlimited voice call for one year
You can check for more plans and data packs online before recharging and ensure to use the cash back offers and discount coupons to save money on your next recharge.
