Beleaguered telecom operator Vodafone Idea Limited, or Vi, is currently in talks with the Ministry of Communications over the much contentious Adjusted Gross Revenues (AGR) issue. While most details on the direction of these talks remain under wraps, the resulting resolution, whichever way it swings, will be decisive for the telecom operator’s survival in India.
The issue at hand is massive. On one hand, having a third private telecom operator in India—one of the world’s largest and fastest-growing consumer markets—is key. Without it, the market is left open to what is essentially a duopoly between Bharti Airtel and Reliance Jio—a factor that could be detrimental to the consumer interest of pricing pressures on the service providers in question.
On the other hand, a decisive call on AGR levies will be essential for Vodafone-Idea. The latter is the worst-performing lot of the three private operators, with a net debt of nearly USD 24 billion to the central government. This includes AGR dues of USD 8.4 billion—with the rest being deferred spectrum payments to be made by the cash-strapped telco.
WHY THE AGR DUES ARE FATAL?
The massive scale of dues has affected Vi significantly. According to data from the Telecom Regulatory Authority of India (TRAI)’s monthly subscriber tracker, in September 2018, the merger of Vodafone and Idea Cellular created India’s largest telecom operator in terms of user base by market share—at 36.6%, against Airtel’s 29.2% and Jio’s 22.5% market shares at the time, six years ago.
Vi, thus, had 428 million users in its network six years ago.
According to the latest TRAI data from July this year, the telecom operator holds an 18.5% market share across India and currently serves 216 million users. This also means that, in six years, Vi has lost nearly half of its user base.
Diese Geschichte stammt aus der October 2024-Ausgabe von Voice and Data.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 2024-Ausgabe von Voice and Data.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Can OTTs stay away from telcos' stride?
OTT, or Internet-based communications platforms, have been excluded from the Telecommunications Act, 2023. Can they continue to survive?
Will Vodafone-Idea survive the AGR tempest?
Telecom major Vi faces its greatest battle yet as it negotiates AGR dues with the Centre, a decision that could seal its fate in India's telecom industry
Linux in the hybrid cloud: Building with digital Lego blocks
Linux, the flexible backbone of the hybrid cloud, combines modularity, security, and cost-efficiency to power modern enterprises' digital transformation
Cultivating the AI mind to think deeper
With the o1 model, OpenAI brings AI closer to AGI by fostering deeper, reasoning-driven solutions for tackling complex problems with a new level of thoughtfulness
The flash mob of connectivity
Self-organising, solar-powered mesh networks bridge connectivity gaps, offering resilient, sustainable solutions for rural areas, industry, and disaster relief
FIXED BROADBAND: THE UNMATCHED BACKBONE OF A DIGITAL ECONOMY
In a mobile-first world, FBB still delivers unmatched quality and greater capacity at lower costs, making it indispensable for India's digital growth ambitions
TELCOS TO TECHCOS: GEARING UP FOR A TECTONIC SHIFT
Telcos are evolving into tech companies, embracing cloud, Al, and loT to unlock new revenue streams and reshape the future of digital services
"RedCap can play a critical role in shaping India's digital future"
Airtel has conducted successful trials of RedCap devices in collaboration with Ericsson, demonstrating the technology's potential within our network.
How Israel Used Legacy Tech For Electronic Warfare
The attack leveraged tampered pager tech, blending human intelligence with electronic warfare to enable kinetic use of Hezbollah's communication radio devices
"REDCAP CAN IGNITE A NEW ERA OF 5G INNOVATION"
Extended discontinuous reception (eDRX) allows devices to enter a deep sleep state, only waking up when necessary to check for network updates