AGR: Analysts believe that the risk of duopoly in the telecommunications industry is higher than before

New Delhi: With Supreme Court Strongly opposed on Friday to fail to comply with its orders to pay statutory contributions telecommunications company situation Vodafone idea One analyst said the company was "particularly vulnerable" and that the industry's duopoly risk was higher than before.

Mahesh Uppal, director of consulting firm Com First India, said: "There is no doubt that this is bad news for the telecommunications industry. This makes Vodafone Idea's situation particularly vulnerable and even more vulnerable than before."

He also said that the risk of duopoly in the telecommunications industry is higher than before.

There are currently 3 private companies in the Indian mobile market-Bharti Air phone, Vodafone's philosophy and trust io male -Except for state-owned operators BSNL / MTNL in poor condition.

Uppal said that for operators, there is now less room for manoeuvre, but he added that if the government sees this as a long-term issue, it can consider policy changes.

"But (what happened in the past) it's not surprising to see SC's position in the recent 2-3 hearings … Given that the operator has signed a license agreement and is therefore obliged to pay, this is a past position. Therefore, any dilution at that location is unlikely, "Uppal pointed out.

The Supreme Court directed the managing director and directors of telecommunications companies and other companies on Friday to explain why they did not take them as they did not comply with their order to pay adjusted gross income (Agricultural growth), The Ministry of Telecommunications will receive a gain of Rs 14.7 crore.

Judge Arun Mishra, Judge S Abdul Nazeer, and Judge MR Shah have strongly noted violations of their orders and are against officials of the Department of Justice The order passed expressed outrage and retained its validity in the AGR decision.

The bench observed: "We don't know who is making this nonsense. Is there no law in the country … it is better not to live in this country, but to leave this country."

In total, up to 15 entities owe the government 14.7 trillion rupees-92,642 crore unpaid license fees, and 555.4 crore in spectrum usage fees.

These arrears were raised after the Supreme Court upheld the government's position on the inclusion of non-core business revenues in telecommunications companies' annual adjusted gross revenues (AGRs) last October, and a portion of these revenues were paid to the Ministry of Finance as a license and spectrum .

VIL faces 530 billion rupees of payable government arrears-its debt amounts to 247.29 billion rupees of spectrum payables and 283.09 billion rupees of license fees, and the company earlier warned that it would shut down if not reduced give.

Vodafone Idea has warned in Thursday's earnings statement that "major uncertainty" has created "major doubts" about its ability to continue operations.

VIL said on Thursday that the company's ability to continue operations will basically depend on the positive outcome of its application to amend the AGR issue in the Supreme Court and any deductions from payments by the telecommunications sector.

Last week, Vodafone CEO Nick Read said the situation in India was crucial after the Supreme Court's AGR ruling. The British telecommunications giant holds a 45.39% stake in VIL.

Rival Bharti Airtel's debt totals almost Rs 35,586 crore, including license fees and spectrum usage fees. Airtel recently stated that the previously mentioned significant uncertainty over the group's ability to continue as a business “no longer exists” after it recently raised Rs 21,502 crore.

Most of the remaining debt is borne by state-owned BSNL / MTNL and some failed / bankrupted telecommunications companies.

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