AGR order a \'good outcome\'\, expect support from promoters in the future\, says Voda Idea CEO
NEW DELHI: Vodafone Idea MD & CEO Ravinder Takkar said that the company is happy with the outcome of the adjusted gross revenue (AGR) case which allows the telecom operator to pay its statutory dues balance of Rs 50,400 crore over ten years beginning March 2022.
“While we and the government had requested a 20-year time period, in our submission to the court we talked about 15 years, actually we are very thankful to the court for allowing us payment over this 10-year period,” Takkar said at a press briefing on Monday. “We believe that this is an important step for us and I think it will be very useful for us when we plan our journey for the next ten years.”
“Our first payment as the outcome of the judgment is going to be in March 2022, which I think is a good outcome,” he added.
He was speaking at the launch of the new unified brand Vi, marking the completion of integration between Vodafone India and Idea Cellular.
Takkar also said that Rs 25,000 crore which the telecom carrier plans to raise is sufficient “for our business plan which we have submitted to our board and which they have approved and we look forward to exploring all options as a company.”
The telco's board, last week, approved a Rs 25,000 fund raise plan via a combination of equity and debt instruments from domestic as well as foreign investors.
On the scope of equity infusion by the teclo’s promoters, the Aditya Birla Group and UK’s Vodafone Group, Takkar said it is a question which can only be answered by them.
“We have support from both the promoters. They continue to, all the time I must say, give us support. We have no reason to believe that any of that support is going to change or come down in the near future or ever at all,” the CEO told reporters.
The company also believes that tariffs should go up and the telco is ready to take the first step, signalling that a rise in tariffs was imminent for the telecom sector which is neck deep in debt.
Takkar said "everyone is selling below cost" and the telco is "not shy to take that step (raising prices)". Takkar added that the sector regulator also needs to look into tariff charts.
A new tariff will help improve the telco's ARPU which is at Rs 114 compared to rival Airtel and Jio's at Rs 157 and Rs 140.