AGR-hit Vodafone Thought desires 7-Eight occasions hike in cellular information tariffs, name charges to allow firm pay statutory dues


New Delhi: Vodafone Thought has demanded fixing minimal tariffs for cellular information at Rs 35 per GB, round 7-Eight occasions of present costs, and for calls at 6 paise per minute together with month-to-month prices from 1 April to allow it pay statutory dues and make its enterprise sustainable.

The loss-making telco is below strain to clear adjusted gross income dues of greater than Rs 50,000 crore to adjust to a Supreme Court docket order. The corporate has sought 18 years time to clear the dues, together with a three-year moratorium on fee of curiosity and penalty, based on official sources.

“There are number of demands that Vodafone Idea has put across the government for its survival. The company wants minimum price of data should be fixed at Rs 35 per gigabyte and minimum monthly connection charge at Rs 50 from 1 April, 2020. These are tough demands which is a problem for government to fulfil,” an official advised PTI on the situation of anonymity.

 AGR-hit Vodafone Idea wants 7-8 times hike in mobile data tariffs, call rates to enable company pay statutory dues

Representational picture. Reuters.

Present cellular web costs are within the vary of Rs 4-5 per GB.

In keeping with the supply, Vodafone Thought desires minimal worth of outgoing calls needs to be mounted at 6 paise per minute.

The demand to lift name and web charges from Vodafone Thought comes inside three months of firm elevating costs by as much as 50 p.c.

“According to the company, increase in mobile call and data rates will help it generate revenue to the same level as Vodafone and Idea individually generated in 2015-16. The company has said that it will take three years to get to that level after tariff hike hence it has sought three-year moratorium for payment of AGR dues,” the supply stated.

A Vodafone Thought spokesperson declined to touch upon the matter.

The federal government levies licence price and spectrum utilization cost based mostly on income earned by telecom corporations.

Telecom corporations and authorities had entered right into a dispute over ascertaining income calculation. The Supreme Court docket upheld authorities methodology of calculating the revenues and ordered telecom operators to clear all dues by January 23, 2020.

The cumulative legal responsibility on telecom operators was estimated at round Rs 1.47 lakh crore by the Division of Telecom in July 2019.

Vodafone has paid Rs 3,500 crore out of Rs 53,000 crore calculated by the DoT.

The corporate has written to the telecom division expressing its incapacity to pay full AGR dues until the federal government takes pressing measures, together with permitting staggered fee, discount in levies and implementation of flooring costs within the crisis-ridden sector.      

Warning that it’s “not in a sound financial state”, Vodafone Thought stated the corporate could be able to satisfy its liabilities provided that the federal government initiates steps together with permitting set offs for GST credit score accrued up to now, and allowing staggered mechanism for fee of stability quantity of curiosity, penalty, and curiosity on penalty.


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