Discussion AGR dues of the Telecom companies

[TheCapedCrusader]

In the end we will be paying it

 

[rajib022]

telecom operator like voda-idea, airtel know how to rise money from market, if govt did not grant 20 years then they will increase rare every 2-3 month. Now I have heard that 1gb will cost around Rs 35 from April. I dont know it is true or false. But it is sure that if govt do not take step then either they leave from India market or increase rate to very high margin.

 

[TheCapedCrusader]

telecom operator like voda-idea, airtel know how to rise money from market, if govt did not grant 20 years then they will increase rare every 2-3 month. Now I have heard that 1gb will cost around Rs 35 from April. I dont know it is true or false. But it is sure that if govt do not take step then either they leave from India market or increase rate to very high margin.

Yes floor price coming soon

 

[iqbal008]

Vodafone Idea says now paid full principal amount of INR 6,854/- crore towards AGR dues

 

[Ashok Varma]

Vodafone Idea says now paid full principal amount of INR 6,854/- crore towards AGR dues

They are saying its a self assessed AGR principle amount.

 

[Ashok Varma]

Now DOT appealed to Supreme Court for 20 year term to collect AGR dues from Telcos.
AGR dues: Telecom department seeks Supreme Court nod for 20-year window for payment - ET Telecom

 

[Bapun]

Telecom operator Vodafone Idea may still struggle to sustain its business in the long term given its weak cash flows, even if the Supreme Court agrees to the government proposal to allow a staggered payment of the adjusted gross revenue (AGR) dues over 20 years or less, analysts say.

Vodafone Idea may struggle to sustain beyond 2 years, despite likely AGR relief: Analysts - ET Telecom

 

[sng_shivang]

I have started taking any analyst's opinion with a pinch of salt. No doubt the company's situation is precarious but the analyst didn't take into consideration a lot of things.

1. The RMS of the company is still decent and close of the peers considering the loss of subscribers in recent month and continued loss of subscribers over next few months. It's not all doom and gloom.
2. The cost cutting initiatives have been in place and would drastically reduce opex over next quarters.
3. The cash flow will remain a concern but the analyst does not take into consideration the market dynamics and prospect of any further investor considering that the telecom industry will be a very lucrative investment once all the trouble goes away and next round of tariff hike take place.
4. The analyst does not take into consideration the government support and continued pitch from banks for support.

That being said, I expect one of the promoters of Vodafone-Idea to exit which I think would be Aditya Birla Group.

 

[Rajat Basak]

Merge BSNL and Vodafone before it's too late. Government can save them both. They can keep 25% revenue share and let BSNL use Vodafone's 4G technology. So Government don't have to pay for 4G allocation and Vodafone don't have to return spectrum.

BSNL made a 39000 crore loss in December 2019.

 

[TheCapedCrusader]

Vodafone idea needs massive fresh cash inflow then only problems will get solved without pumping more money nothing will happen. Vodafone has good deep pockets to invest more but they don't want to do that.