The recent Supreme Court judgement on adjusted gross revenue (AGR) has resulted in telcos facing more than Rs 1.3 lakh crore in additional dues to the exchequer. The government has set up a committee to consider ways in which the struggling telecom sector can be helped.
Tariff war has dented profitability
Bharti Airtel and Vodafone Idea’s numbers are based on Q1 FY20 data, while Jio’s is based on Q2 FY20; Airtel’s revenue consolidates India/Africa numbers
Companies are saddled with massive debt…
The expected amount three telecom companies need to invest in 5G services is Rs 2.1 lakh crore.
High regulatory dues
Airtel and Vodafone Idea’s spectrum liabilities as of June 30, 2019; Jio’s spectrum liabilities as of Oct 30, 2019; OTSC: Telcos, Govt in legal dispute; Spectrum payment dues: Paid by telcos over 16 years from date of spectrum allocation; starts after 2-year moratorium