https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6899281
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Vodafone-Idea in danger of becoming a 'zombie' telco; may just about survive
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Vodafone-Idea in danger of becoming a ‘zombie’ telco; may just about survive:
The initial impression is that Vodafone Idea will struggle to manage this level of staggered payments, given that it owes over Rs 58,000 crore
The Supreme Court order brings some clarity to the telecom sector. The telcos will have to pay their AGR dues over a period of 10 years with the payment being made every February. The stock market reaction so far has been positive in terms of the Bharti Airtel stock rising, and negative for the Vodafone Idea stock, which has fallen sharply.
What does this do to the telecom sector? Reliance Jio (RJio) is fine and would have been fine anyway, regardless of the verdict. Analysts will need to examine the balance-sheets of Vodafone Idea and Bharti Airtel to see if they can handle the cash outflows.
The telcos were asking for a 15-year period; so this verdict will be somewhat disappointing but it could have been worse. The initial impression is that Vodafone Idea will struggle to manage this level of staggered payments, given that it owes over Rs 58,000 crore. Some analysts say that Voda-idea could need to double Average Revenue per User (ARPU) to meet the payments out of cash-flows. That is utterly unrealistic. Bharti Airtel, on the other hand, will be able to pay up without being pushed too hard. However, even Bharti Airtel will find it difficult to make other capex allocations while this commitment is hanging over its head. Hence, it may not be able to bid for 5G spectrum and build out 5G networks at the ideal pace.
Spectrum auctions for 5G may need to be postponed anyhow due to the pandemic disruption. But as of now, only Reliance Jio would be comfortable with bidding for 5G spectrum and it claims to have a home-grown 5G network solution, which will allow it to build out network quickly. All said, Reliance Jio is a clear gainer in the sector. Bharti Airtel should be able to cope and may also gain as subscribers migrate out of the Vodafone Idea’s network. On its part, Vodafone Idea is in danger of becoming a “zombie” telecom service, but it may just about survive. It’s unknown what the parents of Vodafone Idea will do because it would need large capital infusions to thrive under the current circumstances. The banks may be cautious about taking further exposures to the telecom sector, so raising debt from the market to settle the AGR may not be easy.
Post-verdict, the sector will therefore, continue to have three private players. But one of them will be at a major disadvantage compared to the other two. Of the other two, Reliance Jio will clearly be able to enhance its leadership position. Bharti Airtel may eventually gain as it eats into the market-share of Vodafone Idea and it can also hope to capture some migration out of the state-owned BSNL.
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Supreme Court exempts Bharti Airtel, Reliance Jio from paying Rs 40,000 crore AGR dues to Centre
Airtel and Jio have been using the spectrum of defunct telecom companies Reliance Communications, Videocon and Aircel.
“Shared operator telecom companies cannot be saddled with liability of past AGR dues,” the court said while passing a verdict on the payment of revenue by telecom firms to the government.
In its judgement, the top court gave Indian telecom firms 10 years to pay AGR dues to the government. However, 10% of the dues have to be paid by March 31, 2021, the court said.
Justice Arun Mishra said that the telecom firms must pay the dues in annual installments commencing from April 1, 2021, till March 31, 2031. The firms must also keep alive the adjusting bank guarantees until the payments are made.
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6899299
Let’s get ready for price hikes then. 💰
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6899301
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6899308
FEKU is going to loot public through telecom way , only we users will be losers as usual
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6899319
kon feku ?
current govt ?
yeh AGR ki suruwat Congress govt se hua tha.
BJP ne us parampara ko aage badaya.
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900387
Good riddance.
They are trying to recover their losses by charging for toll free 1800 numbers. Scammers.
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900638
If a govt. can’t prevent a critical sector converting to duopoly, its a shame
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900648
Don’t you know actually mota bhai is the government
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900642
I have some main balance should use it asap before they become rcom
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900679
No need to fear, all telecom operators will hike tariff again
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6900689
Reliance Jio se 4G network par 3g speed Tak to di nahi ja rahi 5G ka Kya achaar dalega
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901009
idea user since more dan a decade now….feeling bad for it….once upon a time it was d best network
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901215
+1 number 1 network of Maharashtra & Goa
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901031
Bhai……Bhakton ke lie bas ek hi shabd hai..
“aapka bhi katega”
“Andhbhakti in politics is dangerous” – BR ambedkar
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901170
https://en.wikipedia.org/wiki/List_of_telecom_c...
No. of operators vanished:
From 2000 to 2011 – 3
From 2012 to 2019 – 14
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901195
limited spectrum hote ha.
10 companies kholne ka koi mtlb nhi banta ha.
MVNO operators hone chahiye like USA, China etc.
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6901890
op shld change d topix header 
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902454
Aache khase topic ki vaat laga di 
unfollow kr mai to ab 
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902635
Yea IT Cell parasites jaha tapke, waha kachra he hota hai.
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902507
Nice
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902829
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902891
Seen this video & it is not much different from whatsapp forwards even if it does contain some truth. BSNL had one of the worst performing workforce in the country. From a tier-1 city to a tier-3 city majority knew for years that without paying “extra” the lineman/local exchange won’t do a thing. On top of that have you seen their salary packages & other perks. You don’t incur a cumulative loss of 90000 Crore just like that. How can any business organization sustain when 2/3rd of its income is going in salaries & other perks?
https://economictimes.indiatimes.com/markets/st...
Employee expenses, including retiral benefit accruals, stood at 66% of operating revenues in FY18 versus 21% in FY2006, and 27% in FY2008,” said Kotak in its note.
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6902897
Voda-Idea will become Idli-Vada soon.
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6903090
Verizon USA and Amazon USA seem interested in puchasing a big stake in Vodafone-Idea, so not dead yet.
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6903326
Vodafone have 45% ownership in Verizon USA.
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https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6903095
After reading the whole (almost) thread, I found that people missed the most important point.
It is not that Telecom companies did not pay AGR, it is the way of calculating AGR. There was a long running case which asked whether the telecom companies pay the AGR only for core business or for all the business like rental/sim sells etc.
Since, telecom paid AGR only for the core business (as they understand the meaning of AGR) , the AGR numbers increased rapidly,
Watch this video for more information -
Part 1 –
Part 2 –
Regarding the off topic discussion
Neither congress is good nor BJP, same applies to Mamta, Kejri
But, this doesn’t mean, the govt. should keep on increasing the taxes of middle man and share that with the poor,
Govt, needs to provide Jobs to the poor.
You should ask the govt, why the GDP (or growth rates) fall / why there is a low unemployment for past 40 years. (and most important how are going to cure it) with bold questions.
I dont think banging plates, burning candles, spreading flowers, playing the indian breed dogs, dancing with peacock will help.
https://www.desidime.com/discussions/vodafone-idea-in-danger-of-becoming-a-zombie-telco-may-just-about-survive?page=1#post_6903824
Supreme Court exempts Bharti Airtel, Reliance Jio from paying Rs 40,000 crore AGR dues to Centre
Airtel and Jio have been using the spectrum of defunct telecom companies Reliance Communications, Videocon and Aircel.
“Shared operator telecom companies cannot be saddled with liability of past AGR dues,” the court said while passing a verdict on the payment of revenue by telecom firms to the government.
In its judgement, the top court gave Indian telecom firms 10 years to pay AGR dues to the government. However, 10% of the dues have to be paid by March 31, 2021, the court said.
Justice Arun Mishra said that the telecom firms must pay the dues in annual installments commencing from April 1, 2021, till March 31, 2031. The firms must also keep alive the adjusting bank guarantees until the payments are made.
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