Telecom Conglomerate need Government relief.

Telecom Conglomerate

Vodafone-Idea had served the Government with an ultimatum that they would not be able to repay the Rs. 53,000 Crore Adjusted Gross Revenue ordered by the supreme court, if it was not given an immediate bail out. Vodafone-Idea group which had paid Rs. 3,500 crore revenue, stated that they would not be able to pay out their AGR without the governments support.

They would need a staggered payment option, a reduced license fee and a relief on the spectrum charges that the telecom companies need to pay. They stated that they do not have the funds for the due payment as of now and rely completely on the government for their survival. Vodafone also claimed that they have over 30 crore subscribers in India and had been in loss due to the imposed AGR and the predatory pricing.

Vodafone-Idea had been facing consequent losses for the past a few quarters. The company also stated that the amount the government is demanding should be reduced in the form of recurring claim, penalty and recurring penalty. The company also requested the government to reduce the license fee from 8 percent to 3 percent. Vodafone Idea also demanded that they should fix a floor price for data tariffs as that would improve revenues for the telecom sectors and reduce stress.

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