AGR LIABILITY
Vi needs 2.2x ARPU jump to meet payout obligations
Vi’s ARPU, they said, needs to jump 2.2x to around Rs 320 by FY27—from Rs 146 now—even if the cash-strapped telco sees a 50% cut in its adjusted gross revenue (AGR) liability to Rs 35,000 crore via a favourable Supreme Court verdict on its curative plea. As per company data, Vi’s total AGR dues were pegged at Rs 70,320 crore in the quarter to March 2024.
Vodafone Idea’s AGR dues to plunge 46% if SC verdict on curative petition is favourable: Analysts
Vodafone Idea's AGR dues may drop by 46% to Rs 38,400 crore with relief on curative petition, analysts say. Vi seeks waiver of penalty component in AGR demand. Payment reduction could provide cash flow relief, but challenges remain with significant payouts ahead. Management hopeful for Supreme Court relief on AGR calculation errors. Financial restructuring and strategic partnerships planned for Vi's future growth.
Dial T for telco tax: Supreme Court rings in tweaks
The Supreme Court ruled that license fees payable by telecom companies will be treated as capital in nature, potentially leading to additional tax liabilities of about $1 billion for the sector this fiscal year. The ruling overturns a Delhi High Court order that categorized license fees before and after July 31, 1999, differently. This decision is a setback for older telcos like Bharti Airtel and Vodafone Idea, as well as Reliance Jio, as they will need to reassess their financial structures and potentially face increased tax liabilities. The tax implications will be calculated since 1999.
Vodafone Idea to pay Rs 1,680 crore spectrum auction instalment with a delay of 30 days
"We have submitted a letter to DoT that we propose to pay the spectrum auction instalments of Rs 1,680 crore towards the 2022 auction, which is due on August 17, by availing the grace period of 30 days with interest, in accordance with the terms of NIA (Notice Inviting Applications)," Vodafone Idea chief financial officer Murthy GVAS said during the earnings calls.
American Tower Corporation to take $411-million impairment charge over Vi 'part-payments'
The US company said while announcing its fourth quarter earnings for 2022 that Vi had communicated in early 2023 that "it would not be able to resume payments in full, and would instead continue to make partial payments".
Clear dues or lose tower access: Indus Towers to Vodafone Idea
The tower company shot off this warning to Vodafone Idea in a strongly-worded letter written on Monday, said two people aware of the matter. This followed an Indus Towers board meeting earlier in the day that discussed the company's mounting trade receivables and noted that it was mainly due to payment delays by Vi.
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Vi won't convert deferred AGR interest for FY18 & 19 into equity
Loss-making Vi had on June 22 opted for a four-year deferment of these additional dues. But it needs to inform the DoT by Friday (September 16) on whether it would also opt for conversion of the accrued interest on such deferred AGR-related dues (for FY18 and FY19) into equity. A query to Vi remained unanswered at the time of going to press.
Govt to acquire Vodafone Idea stake after share price stabilises at Rs 10 or above
VIL shares are trading below Rs 10 since April 19. The stock declined by 0.82 per cent to close at Rs 9.69 on BSE on Thursday.
Finance ministry okays Vi dues conversion to govt equity
At June end, Vi's net debt was over Rs 1.98 lakh-crore, with its deferred spectrum payment dues at over Rs 1.16 lakh-crore and debt from banks and financial institutions at Rs 15,200 crore. Its cash and cash equivalents were at Rs 860 crore.
Vodafone Idea prepays ₹2,700 crore short-term loan to SBI
With the government showing no signs of urgency in converting Vi's accrued interest on deferred AGR-related dues into equity, external equity funding appears to be further delayed. This leaves the telco with no option but to arrange more debt to firm up its 5G plans.
Airtel, Jio, Adani pay 5G spectrum auction dues to telecom department
Bharti Airtel has paid Rs 8312.4 crore to DoT towards dues for 5G spectrum. Reliance Jio has paid its first installment of Rs 7864 crore while Adani Data Networks has paid Rs 18.94 crore. Vodafone too is in process of paying its first instalment of Rs 1,679 crore as the first instalment.
Vodafone Idea defers Rs 8,837 cr AGR dues payment, gets option to pay interest via equity
Vodafone Idea (VIL) in the filing said that its board of directors "has approved the exercise of the option of deferment of the AGR related dues by a period of four years with immediate effect, in accordance with the said DoT Letter. The amount of the AGR related dues as stated in the said DoT Letter is Rs 8,837 crores which is subject to revision on account of disposal of various representations".
Govt's Rs 16k cr dues conversion into 33 pc stake to be completed in coming weeks: VIL CEO
As on March 31, 2022, the total debt (including interest accrued but not due) of the group was Rs 1,97,878.2 crore.
Telecom operators owe Rs 1.65 lakh cr to govt in AGR dues : MoS Devusinh Chauhan
The fresh calculation shows AGR liability on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore up to financial year 2018-19.
AGR dues: TDSAT says public, private sector cos cannot be treated differently
TDSAT's latest ruling is on a review petition filed by Netmagic Solutions and Data Ingenious Global. The review petition was against the appellate tribunal's order -- issued on November 19, 2020 -- wherein the plea regarding exemption of PSUs from paying AGR dues was rejected citing the apex court order dated October 24, 2019.
Tata Teleservices (Maharashtra) withdraws Govt equity conversion plan
"As the interest amount eligible for conversion is much lesser than as expected and calculated by the company, the Board of Directors of the company, in its meeting held on February 1, 2022 has decided to withdraw the desire expressed for conversion and inform DoT that the Company is not desirous of opting for conversion of interest into equity," said the telco in a regulatory statement on Tuesday.
Reliance Jio pays Rs 30,791 crore to DoT for spectrum
RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in the auction in the year 2016.
Govt clears telecom relief package; offers option to convert part of statutory dues into equity
The package likely includes a four-year moratorium on AGR and spectrum payments apart from a reduction in the spectrum usage charge (SUC) prospectively, among measures to improve the health of the debt-laden sector and retain a three-private player market.
Vodafone Idea can get $1 billion annual relief if Centre cuts down interest rate, says BNP
The global brokerage said the loss-making telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group would be able to further cut its current Rs 1.9 lakh-crore debt burden if the government allows it to surrender unused spectrum in non-priority markets, moves that would help the telco reduce the net present value (NPV) of its overall liabilities and improve future cash flows.
Centre mulls ways to let Vodafone Idea, Airtel pay AGR dues over 20 years
The government is exploring ways to allow telcos such as Vodafone Idea and Bharti Airtel to pay their adjusted gross revenue (AGR) dues over 20 years, and may seek a legal opinion on a possible mechanism, govt officials said.
Tatas add Rs 8,090 crore towards telcom liabilities
Tata Sons has recognised a provision of ₹8,090 crore for its telecom unit during the year ended March, taking the total provision for gross liabilities pertaining to adjusted gross revenue (AGR) dues of Tata Teleservices to ₹18,490 crore.
Voda Idea MD Ravinder Takkar thanks users for support, avoids crisis mention
"...Vi came with a promise of a better tomorrow, bringing the best in technology, services and solutions for the Digital Indian and Digital Bharat. We will continue to deliver on this promise to keep you ahead," said Takkar on Friday in a message to subscribers. The message comes about a year after the rollout of Vi brand.
2021 to ring in spectrum auctions, potential tariff hikes for telecom sector
The Indian telecom market, which once had nearly a dozen operators, has in recent years seen exit of some prominent names due to cut-throat competition and legal cases.
Telcos' AGR liabilities eroded benefits from tariff hikes: Crisil
“Had the AGR liability not panned out as it did, the tariff hikes undertaken in December 2019 could have improved the industry’s RoCE to 7% in fiscal 2021 and to 9% in fiscal 2022, from lows of 3% in fiscal 2020,” the ratings firm said.
Jio-RCom spectrum sharing deal not connected with AGR liability: Sources
A Supreme Court bench had on Friday sought to know why Reliance Jio Infocomm Ltd (RJIL) must not pay adjusted gross revenue (AGR) dues of Reliance Communications since it has been using the latter's spectrum since 2016.
Voda Idea Q1 results: Loss widens to Rs 25,460 crore; AGR provisions, user losses hurt
The April-June period is the telco’s eighth straight loss making quarter.
Reliance Comm liable to pay SSTL AGR dues, DoT identifies combined liability worth more than Rs 25k cr
In February 2019, RCom filed for insolvency. Under the proceedings, the DoT has claimed nearly Rs 30,000 crore in dues from RCom, of which over Rs 21,000 crore has been verified by the resolution professional.
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.
Not in sound financial state; can meet liabilities only with government support: Voda Idea on AGR dues
Warning 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.
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