Vodafone-Idea and Airtel might face more difficulties as committee for telecom relief package reportedly disbanded

Considering the current state of the telecom industry, saying that the top telecom operators Vodafone-Idea and Airtel are in a pickle wouldn’t be incorrect. The two operators need to pay over Rs 89,000 crore in combined AGR (Adjusted Gross Revenue) dues to the government and it seems like the scenario is going to get even more difficult. ET apparently had a conversation with a “a top government official” who says that the (CoS) Committee of Secretaries that was formed to help the telcos with some relief measures is now disbanded. If the report can be believed, it means even tougher times could be in store for the telcos. 

The government official also reveals that the telcos have received a two-year moratorium for spectrum payment dues, along with a relief of Rs 42,000 crores. However, the report mentions that the telco should not expect anything more than this. It is unclear if a new committee will be formed to help the telcos with their struggling dues and provide relief for the still remaining Rs 1.47 lakh crore adjusted gross revenues but the official said this won’t be happening since it is an “SC-defined matter.” This report comes after the government decided not to reduce the 8 percent AGR telcos need to pay license fees. Telecom carriers have less than three months to clear their dues. 

The mounting due for telecom operators due to AGR is apparently making things too difficult in times of cutthroat competition. One of the leading telcos has also expressed concerns over continuing its operations in the country if some relief is not provided.  Rajan Mathews, director-general of Cellular Operators Association of India (COAI) reportedly says, “We trust this does not mean the government has ceased to look at the long-term relief and sustainability of the industry. We hope these issues will continue to be looked at and decided upon by DoT through existing channels of decision making. 

There's also a report stating 5G deployment in India might be pushed by five years. You can read the full report here. 

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