India’s telecom service providers face an uphill battle in their quest for relief from levies on adjusted gross revenue (AGR). Despite pleas for reduction or removal of license and USO fees, the Union Finance Ministry remains hesitant due to concerns over potential revenue loss. This decision could stifle investment and innovation in the sector, with experts arguing for a more rational approach to ensure a robust telecom infrastructure.
The Supreme Court has dismissed curative petitions filed by Vodafone Idea and other telecom companies, upholding its 2019 ruling on Adjusted Gross Revenue (AGR) calculations. This decision throws Vodafone Idea deeper into financial crisis, while Airtel sees a slight boost. The court’s refusal to reconsider the AGR calculation method will likely further burden Vodafone Idea, which is already struggling to meet its financial obligations and improve its services.
The Supreme Court of India will hear curative petitions filed by telecom giants Bharti Airtel and Vodafone Idea challenging the 2019 AGR ruling that imposed significant financial burdens on the companies. The hearing, scheduled for 1:30 pm today, will be closed to the public.
Reliance Jio recorded the highest adjusted gross revenue (AGR) at Rs 25,330.97 crore in the March 2024 quarter, while Bharti Airtel saw the sharpest AGR growth. Overall, telecom service providers’ gross revenue grew by 3.01%, with the government collecting over Rs 6,506 crore in licence fees and spectrum usage charges.
