• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:12:08 AM IST | Monday, Jan 30, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > In Other News > Telecom dept examines impact of SC order on adjusted gross revenue beyond telcos
In Other News
Telecom dept examines impact of SC order on adjusted gross revenue beyond telcos
By  
PTI   , Published : Nov 7, 2019, 6:37 pm IST | Updated : Nov 7, 2019, 6:37 pm IST

Airtel, Vodafone Idea and other telecom operators may have to pay the government a whopping Rs 1.42 lakh crore in three months.

A DoT official privy to the development said instructions have gone to the licencing wing to carefully examine the implication of the Supreme Court's recent ruling for all such companies. (Photo: Representational)
A DoT official privy to the development said instructions have gone to the licencing wing to carefully examine the implication of the Supreme Court's recent ruling for all such companies. (Photo: Representational)

New Delhi: The communications ministry has started examining whether the Supreme Court's ruling on definition of telecom revenue may apply to any company that utilises radiowaves and has a telecom licence, throwing up the possibility of statutory dues swelling beyond Rs 3 lakh crore, according to a source.

A DoT official privy to the development said instructions have gone to the licencing wing to carefully examine the implication of the apex court's recent ruling for all such companies.

The Department of Telecommunications (DoT) will take a week or so to arrive at a definitive conclusion on the matter, the source added.

The Supreme Court last month upheld the government's way of calculating telecom revenue, on which licence fee and spectrum usage charges are computed.

As per the initial calculations, access players like Airtel, Vodafone Idea and other telecom operators may have to pay the government a whopping Rs 1.42 lakh crore within three months.

Bharti Airtel faces a liability of around Rs 42,000 crore after including licence fees and spectrum usage charges, while Vodafone Idea may have to pay about Rs 40,000 crore. Jio may have to pay around Rs 14 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt companies.

However, DoT is now applying its mind on whether the apex court order also impacts any other company which uses spectrum or has a licence. Discussions are going beyond the scope of 4-5 pure play telecom access providers.

"As we dwell deeper, the issue of larger implications of the SC order is coming up for other firms," the source said.

These may even include other category of licences or companies utilising radiowaves in oil and gas, power and even railways sectors, the source said, adding that the question before the telecom department is whether the statutory dues therefore have to be calculated on the overall revenue.

The matter has, however, not been placed before the newly-constituted Committee of Secretaries, as the telecom department first needs to arrive at a final view on the matter, the source added.

Back-of-the-envelope calculations show that if indeed the impact of the SC judgement on adjusted gross revenue (AGR) goes beyond the pure-play telecom access firms, the statutory dues may climb beyond Rs 3 lakh crore, the source added.

The government recently constituted a Committee of Secretaries to work out a financial bailout package that may include lowering of spectrum charges as well as ending the era of free mobile phone calls and dirt cheap data.

The Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, has been asked to examine "all aspects" of "financial stress" faced by service providers such as Bharti Airtel and Vodafone Idea and suggest measures to mitigate them. The panel has already held two meetings since it was constituted.

end-of
Tags: 
adjusted gross revenue, supreme court, telecom, airtel, vodafone idea, licence fee, spectrum usage charges
Location: 
India, Delhi, New Delhi
Latest From In Other News
Kaleshwaram Irrigation Project. Picture credits : ANI

NGT says environmental clearance for Kaleshwaram violates law

Internet and Mobile Association of India too had sought clarification on the issue. (Photo: PTI)

DPIIT to soon issue clarification on 26 pc FDI in digital media sector

In financial year 2018-19 the proportion of gross non-performing assets (NPAs) to total loans decreased to 9.1 per cent compared to 11.2 per cent in 2017-18.

RBI sees corporate governance 'fault lines' at some lenders

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham