Supreme Court decision on telecom revenue definition to weaken sector viability: Bharti Airtel

By: |
Published: October 24, 2019 2:57:47 PM

The Supreme Court judgement, allowing the centre's plea to recover AGR (revenue earned from sale of telecom services) of about Rs 92,000 crore from telecom service providers, will add to the woes of financially distressed telecom operator.

Bharti Airtel, Supreme Court, AGR, Department of Telecommunications, telecom service providers, airtelThe company said of the 15 old operators impacted by the order, only two private sector operators remain in service today.

Telecom operator Bharti Airtel on Thursday said the Supreme Court verdict on adjusted gross revenue will weaken viability of telecom sector, and the government must review its impact and find ways to mitigate financial burden on the already stressed industry.

The Supreme Court judgement, allowing the centre’s plea to recover AGR (revenue earned from sale of telecom services) of about Rs 92,000 crore from telecom service providers, will add to the woes of financially distressed telecom operator.

Also read: Asia’s fintech space to have small, disruptive players ahead; large ones will team up for more offerings

Expressing disappointment on the verdict, Bharti Airtel said: “The TSPs have invested billions of dollars in developing the telecom sector and providing world-class services to consumers. This decision has come at a time when the sector is facing severe financial stress and may further weaken the viability of the sector as a whole”.

The company said of the 15 old operators impacted by the order, only two private sector operators remain in service today. There has been an industry dispute since 1999-2000 between licensees and the licensor i.e., the Department of Telecommunications on the scope of the definition of AGR.

The liability on Bharti Airtel alone is estimated to be over Rs 21,000 crore. “The government must review the impact of this decision and find suitable ways to mitigate the financial burden on the already stressed industry,” Airtel said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1HDFC Life Q2 net up 7.5% at Rs 309 crore
2New fuel retail rule: Easier entry norms may dent monopoly of PSUs
3Coal India banks on enhanced evacuation to make up for short supplies