After an initial blip, all the stocks of non-telecom companies on whom the demands have been raised have recovered from their losses
While Bharti Airtel and Vodafone Idea did not pay the dues, billionaire Mukesh Ambani-led Reliance Jio paid Rs 195 crore to clear all outstanding against it, official sources said.
Following a Supreme Court ruling that non-telecom revenues should be included for considering payments of government dues, the Department of Telecommunications (DoT) has asked Oil India to pay Rs 48,000 crore in principal dues together with interest and penalty for using optic fibre network for internal communication. The dues sought are double the net worth of Oil India.
The current view that is emerging in the DoT appears to be that the court-imposed timeline may not apply to PSUs, but the matter is being legally examined for clarity.
"We do not find any merits in the appeal," a bench of justices RF Nariman and S Ravindra Bhat said.
The meeting on Tuesday, chaired by Telecom Secretary Anshu Prakash, lasted for over an hour. An official with one of the telcos said that all operators attended the meeting.
This new 5G chunk is separate from the Rs 5.2 lakh crore spectrum sale plan approved by the Digital Communications Commission on December 20
Sources with direct knowledge of the development said DoT sent a letter to GAIL last month seeking Rs 1,72,655 crore in dues on IP-1 and IP-2 licences as well as Internet Service Provider (ISP) licence.
No floor on telecom tariffs puts Airtel in a commanding position to skim 2G-3G market
DoT has reportedly started to fresh notices to these companies to comply with the Supreme Court order.
Addressing the ASEAN-TRAI program on 'capacity building and sharing of best practices in policy regulation and development', Prakash said the sector is also playing a major role in empowering citizens, contributing to better governance and enhancing transparency.
The government has constituted a committee of secretaries to explore a financial bailout package for the telecom sector. Last month, when the high-level panel was set up, an official source had said that sector regulator Trai is expected to examine prescribing minimum charge for voice and data services, which will ensure long-term viability and robust financial health of the sector.
The Committee of Secretaries set up to examine the telecom sector should ignore the petulance of incumbents.
The very talk of failure seems to be some kind of negotiating tactic. After all, incumbents can raise tariffs to improve their profitability. There are also the possibilities of equity infusions and asset monetisation to raise the necessary money for the government’s dues.
Relief to Bharti and Vodafone will also open up the government to charges of favouritism. In the Darwinian world of telecom services in India, many companies have fallen by the wayside, including biggies such as Telenor and Etisalat. They faced the same problems and failed, but the government didn’t step up to bail them out at that time
Associate Editor, CNBC TV18, Reema Tendulkar explains why telecom operators may have to pay up AGR to the tune of Rs 92,000.
Telecom companies will have to pay up as much as Rs 92,642 crore to the government, more than half of which are owed by Airtel and Vodafone.
The state-run enterprise utilised internal accruals and some payment from the Department of Telecommunications to clear employees' salaries
The company remains confident that it will also be given permission to participate in 5G trials in India, Huawei stated.
Ahead of the fresh deadline, the DoT will issue clarifications and changes to the Request for Proposal or the bid document and give "fair time" to the interested agencies to place their bids.
The Department of Telecom is examining the claims that have been made by the state-owned corporation, sources said.
The source, privy to the development, said merger is "one of the many components" of the overall revival plan being worked out for the two corporations, and that a final call on the matter will be taken by the Cabinet.
Bharti Airtel on July 1 announced that the consumer mobile business of Tata Teleservices Ltd (TTSL) has now become its part.
The tracking system would make the detection of stolen mobile phones possible even if the SIM card is removed or unique code IMEI number is changed, the official revealed.