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In a move that could dampen the hopes of Bharti Airtel, and particularly Vodafone Idea, Telecom Minister Jyotiraditya Scindia clarified that the "AGR (Adjusted Gross Revenue) verdict is here to stay."
Scindia was responding to a question from CNBC-TV18 during a wide-ranging conversation with the media at Sanchar Bhawan.
When CNBC-TV18 inquired whether the government was open to reconsidering AGR demands following the Supreme Court's rejection of curative petitions filed by telecom companies, Scindia reaffirmed the finality of the ruling. The telecom firms had argued there were "arithmetic" errors in calculating the AGR demand of ₹1.47 lakh crores.
The Minister clarified that the Supreme Court has ruled definitively on this matter, though he declined to comment on whether the Department of Telecommunications (DoT) is currently considering any further relaxation for telecom companies post-verdict.
Regarding the industry's requests for a bank guarantee (BG) waiver, Scindia sought to ease concerns by stating that any relief, if provided by the DoT, would apply across the sector and not be specific to any one company.
The telecom sector, and particularly Vodafone Idea, had appealed to the DoT to waive BG requirements for spectrum acquired before 2021. A policy introduced by the DoT already exempts post-2021 spectrum auctions from BG requirements. Airtel had separately appealed to the DoT, expressing concern that any relief allowed, should be available to all telecom operators.
Scindia did not provide a timeline for when the DoT might reach a decision on the BG waiver requests.
The Minister also addressed the issue of call drops and overall Quality of Service (QoS) concerns. Among the initiatives he highlighted was a shift from quarterly to monthly performance reviews for telecom operators, set to begin in April 2025. Additionally, he explained that monitoring would move from the tower level to the cell level for better accuracy.
Importantly, Scindia hinted that telecom companies failing to meet QoS standards could face financial penalties.
Scindia was responding to a question from CNBC-TV18 during a wide-ranging conversation with the media at Sanchar Bhawan.
When CNBC-TV18 inquired whether the government was open to reconsidering AGR demands following the Supreme Court's rejection of curative petitions filed by telecom companies, Scindia reaffirmed the finality of the ruling. The telecom firms had argued there were "arithmetic" errors in calculating the AGR demand of ₹1.47 lakh crores.
The Minister clarified that the Supreme Court has ruled definitively on this matter, though he declined to comment on whether the Department of Telecommunications (DoT) is currently considering any further relaxation for telecom companies post-verdict.
Regarding the industry's requests for a bank guarantee (BG) waiver, Scindia sought to ease concerns by stating that any relief, if provided by the DoT, would apply across the sector and not be specific to any one company.
The telecom sector, and particularly Vodafone Idea, had appealed to the DoT to waive BG requirements for spectrum acquired before 2021. A policy introduced by the DoT already exempts post-2021 spectrum auctions from BG requirements. Airtel had separately appealed to the DoT, expressing concern that any relief allowed, should be available to all telecom operators.
Scindia did not provide a timeline for when the DoT might reach a decision on the BG waiver requests.
The Minister also addressed the issue of call drops and overall Quality of Service (QoS) concerns. Among the initiatives he highlighted was a shift from quarterly to monthly performance reviews for telecom operators, set to begin in April 2025. Additionally, he explained that monitoring would move from the tower level to the cell level for better accuracy.
Importantly, Scindia hinted that telecom companies failing to meet QoS standards could face financial penalties.
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