Tag: Bharti Airtel

Bharti Airtel, Vodafone Idea plan curative plea after AGR suit dismissal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After the Supreme Court rejected a plea filed by telecom companies to review its 24 October adjusted gross revenue (AGR) ruling, Bharti Airtel and Vodafone Idea said they could file curative petitions. The SC judgement mandates the telcos to pay nearly Rs 1.02 lakh crore as statutory payment to the government by January 23.

In a late-night statement, Vodafone Idea said, “the company is exploring further options, including the filing of a curative petition”. Bharti Airtel also said it was mulling a curative petition over the AGR order. Tata Teleservices, which had also filed the review petition didn’t comment on its future course of action.

The Cellular Operators Association of India (COAI), the industry association, termed the dismissal of petitions as the last straw on the sector’s back reeling under the financial stress.

“While we respect the Supreme Court’s order dismissing the review petition on AGR order, the telecom sector is deeply disappointed,” said COAI Director General Rajan Mathews.

He said the sector, reeling under Rs 4 lakh crore debt, was a key contributor to the Indian economy in terms of consumer benefit, employment, revenue generation and contributed 6.5 per cent to the gross domestic product (GDP).

“The sector is facing 29-32 percent taxes and levies, which are the highest globally,” he said and added, it had to be seen whether the industry could recover from this setback.

This added financial pressure on the sector would also adversely impact Prime Minister Narendra Modi’s vision of ‘digital India’, Mathews said.

“The industry needs to continue to invest in expanding networks, acquiring spectrum and introducing new technologies, like 5G. The money required to pay — punitive interest, penalty and interest on penalty — which forms nearly 75 per cent of AGR dues, would have better served India’s digital mission,” Airtel said.

The setback is severe, particularly for VIL and Bharti Airtel, which had been seeking a waiver of penalties and interest. VIL Chairman K.M. Birla has said the company may have to stop operations if it doesn’t receive any relief from the government.

VIL and Airtel have to pay Rs 53,039 crore and Rs 35,586 crore, respectively.

Tata Teleservices, which sold its consumer mobility business to Airtel but the deal is yet to get the Department of Telecom’s (DoT) nod, faces Rs 13,823 crore in dues.

Some 15 telcos, including the three, need to pay over Rs 1.47 lakh crore to the government as was disclosed to Parliament by Telecom Minister Ravi Shankar Prasad.

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Reliance Jio widens subscribers’ base; Airtel, Vodafone Idea way behind in Nov 2019, shows Trai data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mukesh Ambani-led Reliance Jio continued to take a lead in widening its subscribers’ base by big margins in November 2019. Its rival Bharti Airtel fell way behind, while Vodafone Idea’s subscriber base witnessed a drastic fall.

Telecom Regulatory Authority of India (Trai) data, released on Thursday, shows Reliance Jio brought in 5.6 million wireless subscribers, while Bharti Airtel could only manage to add only 1.6 million new customers in November.

Vodafone Idea, after witnessing a minor improvement in subscriber base in October, lost 9.7 percent or 36.4 million wireless subscribers in November. In October, the telecom service provider added 1.89 lakh users.

With this, Vodafone Idea’s market share fell to 29.12 percent, while Reliance Jio and Bharti Airtel held 32.04 percent and 28.35 percent market shares, respectively, in the said month.

Both in terms of both subscriber base as well as revenue market share,  Reliance Jio is now the number one telecom operator in the country.

In the broadband category, Reliance Jio took lead with a 56.07 percent market pie. According to the Trai report, Airtel added 7,793 subscribers in November. In October, it lost 8,830 users in the broadband category.

On a month-on-month basis, number of subscribers across all categories fell 2.40 percent, according to the report.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

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Setback for Vodafone Idea and Bharti Airtel as Supreme Court dismisses AGR review petitions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a setback for Vodafone Idea and Bharti Airtel, the Supreme Court on Thursday dismissed telecom companies’ plea seeking review of its order on the recovery of Rs 92,000 crore on the issue of adjusted gross revenue (AGR).

A bench comprising Justices Arun Mishra, S A Nazeer and M R Shah did not find merit in the review plea and said that the telecom companies are at liberty to file curative petitions against the review petition.

Telecom firms are supposed to pay Rs 92,000 crore in dues by January 23 following the court order in October last year.

Reacting to the SC ruling, Bharti Airtel said it’s disappointed as the company believed the long-standing disputes raised regarding the AGR definition were bonafide and genuine. However, the company is evaluating to file a curative petition.

“The industry needs to continue to invest in expanding networks, acquiring spectrum and introducing new technologies like 5G. The money now required to pay punitive interest, penalty and interest on the penalty which forms nearly 75% of AGR dues would have better served the digital mission of the country,” the company said.

The Supreme Court had ordered telecom firms, including Bharti Airtel Ltd and Vodafone Idea Ltd, to pay the government as much as Rs 92,000 crore ($13 billion) in dues, which include penalties and interest.

In the verdict, a bench headed by Justice Arun Mishra had said telecom companies will have to shell out the dues. The Department of Telecom’s (DoT) total demand is estimated at around Rs 92,000 crore.

“We allow the appeals of the DoT… The gross revenue will prevail as defined as gross revenue”, said the court citing no further exercise should take place in connection with the re-calculations regarding the dues.

Union telecom minister Ravi Shankar Prasad had told Parliament in November that Bharti Airtel, Vodafone Idea and other telecom companies owe the government as much as Rs 1.47 trillion in past statutory dues. He had added that there is no proposal at present to waive interest and penalties on such dues.

In replies to separate questions in the Lok Sabha, Prasad had said telecom companies owe the government Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges.

In an affidavit filed earlier in the top court, the DoT said Airtel owed Rs 21,682.13 crore as a licence fee to the government and dues from Vodafone totalled Rs 19,823.71 crore, while Reliance Communications owed Rs 16,456.47 crore. BSNL owed Rs 2,098.72 crore, and MTNL Rs 2,537.48 crore.

Holding that interest and penalty have rightly been levied on the telecom companies, the apex court had made it clear that there would be no further litigation on the issue and it would fix a time-frame for calculation and payment of dues by the telecom companies.

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Market hits record high after opening mildly up, Nifty above 12,370; YES Bank top gainer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian equity benchmark indices opened mildly higher on Thursday on the back of the US and China signing an initial trade deal.

The Sensex opened 29.87 points or 0.07 percent higher at 41,902.60 while the Nifty50 index opened at 12,351.60, up 8.30 points or 0.07 percent. Broader indices continued to rise, with Nifty Smallcap100 and Nifty Midcap100 surging 0.66 percent and 0.47 percent, respectively. 

However, soon, the market hit a record high with the Nifty crossing the earlier level of 12,374.30 and the Sensex surpassing the 42,000 level.

Nifty Realty remained the best-performing index in the early morning session, rising 1.01 percent, while Nifty Metal was the worst-performing sectoral index, down 0.82 percent.

Sun Pharma, YES Bank, Nestle India, Britannia, and UltraTech Cement were the Nifty50 top gainers while Vedanta, JSW Steel, Tata Steel, IndusInd Bank, and NTPC remained the top losers.

Telecom stocks gained in the early trade ahead of Supreme Court’s hearing on the ‘adjusted gross revenue’ today. Bharti Airtel and Vodafone Idea surged 1 percent and 6 percent, respectively.

In the Asian markets, shares saw some gains after the United States and China ended some uncertainties for the world economy by signing a partial trade agreement.

Catch all the latest updates from the stock market here.

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

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Airtel, Reliance Jio, Vodafone Idea submit applications for 5G trials

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operators Bharti Airtel, Reliance Jio and Vodafone Idea have submitted their applications for 5G trials, industry sources said. Airtel has joined hands with Huawei, ZTE, Ericsson and Nokia for 5G trials in the country, while Jio has partnered Samsung, sources said.

Vodafone Idea has also filed its application for 5G trials and the company has partnered Huawei, ZTE, Ericsson and Nokia for the same, the sources added.

E-mails sent to Bharti Airtel, Reliance Jio and Vodafone Idea remained unanswered.

Last month, Telecom Minister Ravi Shankar Prasad had said the government will allocate airwaves to all telecom service providers for conducting trials of super-fast speed 5G network. India will not bar any equipment suppliers in the upcoming trials for 5G.

The stance had spelt relief for Chinese telecom gear maker Huawei, which rivals western equipment makers such as Ericsson and is facing curbs in the US.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Court to consider review pleas filed by telecom firms on AGR verdict today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court will on Thursday take up in-chambers the petitions seeking review of its verdict on the Adjusted Gross Revenue (AGR), which allowed Centre’s plea to recover Rs 92,000 crore from telecom companies.

A bench headed by Justice Arun Mishra and comprising Justices S.A. Nazeer and M.R. Shah will consider the review petitions of the telecom operators, though, Vodafone Idea and Bharti Airtel had sought an open court hearing on their pleas.

The review petitions were mentioned before Justice Arun Mishra after the court reopened after vacations. Justice Mishra had said he would speak with the Chief Justice S.A. Bobde on the matter. In the in-chamber review, the petitions are circulated among the judges on the bench and there is no lawyer to argue the matter.

Telecom firms are supposed to pay Rs 92,000 crore in dues by January 23 following the court order in October last year.

The Supreme Court had ordered telecom firms, including Bharti Airtel Ltd. and Vodafone Idea Ltd, to pay the government as much as Rs 92,000 crore ($13 billion) in dues, which include penalties and interest.

In the verdict, a bench headed by Justice Arun Mishra had said telecom companies will have to shell out the dues. The Department of Telecom’s (DoT) total demand is estimated at around Rs 92,000 crore.

“We allow the appeals of the DoT… The gross revenue will prevail as defined as gross revenue”, said the court citing no further exercise should take place in connection with the re-calculations regarding the dues.

The top court specified that there should not be any further litigation on the matter. The apex court also passed a separate order on the specific time frame for the telecom companies to pay their dues.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel allots 32.35 crore equity shares under QIP issue to meet AGR dues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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To meet the AGR dues of Rs 35,500 crore by January 23, Bharti Airtel on Wednesday came closer to arrange the funds as it announced the allotment of 32.35 crore equity shares to eligible buyers at an issue price of Rs 445 apiece as part of $2 billion qualified institutional placement.

The Department of Telecommunications had calculated Airtel’s AGR dues to be over Rs 35,500 crore in licence fees, spectrum usage charges, interest and penalties. The subscription to the fundraising for $3 billion issues closed on Tuesday.

The QIP issue price was at a discount of 1.57 percent to the stated floor price of Rs 452.09 per equity share. Airtel embarked on a mega fundraising exercise, the proceeds of which will be used to pay to adjust the dues.

Shareholders of telecom operator had earlier this month approved proposals to raise up to $2 billion in equity and another $1 billion in debt. Airtel announced the closure of the issue period for the QIP and fixed the issue price at “Rs 445 per equity share which is at a discount of 1.57 percent to the floor price of Rs 452.09 per equity share”.

As many as Rs 32.35 crore equity shares are being allotted to eligible buyers, as part of the QIP, the company said in a regulatory filing.

The special committee of directors for the fundraising exercise also cleared the terms of foreign currency convertible bonds including the issue price.

“FCCBs due 2025, convertible into fully paid-up equity shares of face value of Rs 5 each of the company at a price of Rs 534 per conversion equity share to initial purchasers subject to receipt of funds, satisfaction of other conditions precedent and settlement as per applicable laws and procedures and relevant agreements,” the filing said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RCom lenders to declare highest bidder soon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lenders to Anil Ambani-led Reliance Communications, Reliance Infratel, and Reliance Telecom are in the final stages of evaluation process for bids received for the three companies under the Insolvency and Bankruptcy Code, and are likely to declare the highest bidder (H1) for each by January 14, three people aware of the development told CNBC-TV18 on the condition of anonymity.

While Mukesh Ambani-led Reliance Jio Infocomm has only bid for Reliance Infratel, Bharti Airtel and UV Asset Reconstruction Company (UV ARCL) have bid for all three and US-based Varde Partners has submitted a bid for RCom and Reliance Telecom, the people quoted above said.

For RCom, Bharti Airtel has submitted a bid of Rs 680 crore for financial creditors, and Rs 170 crore for operational creditors, said the sources. UVARCL has offered Rs 5 crore cash settlement, and Rs 9,100 crore in the form of long term zero-coupon bonds.

Varde Partners has offered Rs 49 crore upfront to lenders, Rs 2,320 crore in the form of long term zero-coupon bonds and Rs 8,760 crore junior unsecured debt.

Reliance Jio has not placed a bid for RCom.

For Reliance Infratel, while Reliance Jio has offered Rs 3,609 crore for financial creditors. Bharti Airtel is understood to have offered Rs 1,439 crore for financial creditors and another Rs 360 crore for operational creditors, said the sources.

UVARCL has offered Rs 5 crore upfront cash settlement and Rs 2,450 crore long term zero-coupon bonds, according to people familiar with talks.

For Reliance Telecom, Bharti Airtel has made a bid of Rs 104 crore, including Rs 83 crore for financial creditors and Rs 21 crore for operational creditors.

UVARCL has offered Rs 11 crore upfront cash settlement, and Rs 910 crore long term zero-coupon bonds. Varde Partners is understood to have offered Rs 1 crore upfront, and Rs 32,692 in the form of various long term debt instruments, as per sources.

The three Anil Ambani group companies are collectively facing claims of over Rs 86,000 crores. RCom is facing claims of over Rs 49,190 cr under the NCLT, Reliance Telecom over Rs 24,300 crore and Reliance Infratel over Rs 12,600 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow