BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL Astrology GOSSIP CORNER SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
logo
Breaking News

Vodafone-Idea may be shut down due to continuous losses and AGR payments!

Sunday - February 16, 2020 4:23 pm , Category : BUSINESS
Vodafone-Idea could not compete in a competition with the Reliance Jio
Vodafone-Idea could not compete in a competition with the Reliance Jio

So soon Vodafone-Idea to become history in India! 

FEB 16 (WTN) - With nearly 90 million mobile phone users, India is the second-largest country in the world after China in terms of mobile phone users. India has 10 times more mobile phone users than the population of many countries in Europe. Naturally, due to the number of crores of mobile phone users, there is stiff competition among telecom companies in India. Prior to the launch of Reliance Jio in 2016, there were many mobile companies in India, and these mobile companies were also getting a lot of benefits. But after Jio entered the telecom sector, other mobile companies could not compete with Jio's marketing, and the telecom companies suffered huge losses.

There was also a period in India when you had to spend around 300 rupees for 2 GB of data in a month, and calling was also very expensive there. But Reliance Jio changed the entire picture of the Indian telecom sector after taking the step in the telecom sector. Reliance Jio has offered free calling to its users, as well as Reliance Jio has made internet data so cheap that no one had ever imagined it. But the cheap offers of Reliance Jio worsened the condition of the remaining telecom companies. Gradually, users of other telecom companies started to port their numbers to Jio and other telecom companies suffered a huge loss.

Like Jio, other telecom companies also had to make a free calling and cheaper Internet data. But the rest of the telecom companies did not benefit like Jio, and these companies gradually got caught in the economic crisis. The situation is that after heavy losses every month, it has become more difficult for Idea-Vodafone to run its operations in India. Actually, all this has happened after the order of the Supreme Court. In fact, many telecom companies in the country have to pay a fixed amount to the Department of Telecommunications, known as AGR, but due to losses, the companies are describing themselves as unable to pay this amount. For your information, let us know that Vodafone-Idea chairman Kumar Mangalam Birla has already said that if the government does not provide financial support, then the company would shut down.

For your information, let us know that Vodafone-Idea Company has an AGR (Adjusted Gross Revenue) of Rs 53,000 crore. If you do not know what the AGR is? Then for your information, let us know that the AGR is a kind of fee that the Department of Telecom collects from the telecom companies in the name of usage and license. Crores of rupees AGRs arrears have been reported on several other telecom companies, including Vodafone-Idea. As far as Vodafone-Idea is concerned for your information, let us know that the financial condition of Vodafone-Idea is not such that it can pay the money of AGR.

For information, let us know that the Vodafone-Idea company incurred a total loss of Rs 6,439 crore during the third quarter (October-December) of the current financial year. This is the sixth consecutive quarter when the company has incurred losses. It is clear that Vodafone-Idea, which is constantly facing losses does not have the money to pay AGR, in such a situation, the company can go to the NCLT (National Company Law Tribunal) because the company has to pay the arrears before the next hearing of the case on March 17. Explain that if the NCLT accepts the matter, it will be prohibited from paying the arrears under the Bankruptcy Law and thus the company may not have to pay. 

Actually, the telecom companies were expecting relief from the Supreme Court in the AGR case, but the Supreme Court has categorically refused to give any relief to the telecom companies in this case. Let us know that the Supreme Court, on Friday, reprimanded the telecom companies for not giving the arrears of Rs 1.47 lakh crore to the government. The court has summoned the high officials of all these companies to explain why the order of the top court has not been followed to repay the arrears? Explain that the Supreme Court had reprimanded the telecom companies and asked them to deposit Rs 1.47 lakh crore by February 14.

It is clear from the attitude of the Supreme Court that it is not in favor of giving any relief to the telecom companies. In such a situation, if the Vodafone-Idea company closes to pay AGR, then only two companies in the telecom sector, Bharti Airtel and Reliance Jio will survive. But experts say that with only two companies left in the telecom sector, the options will be limited to the customers, and in such a situation both companies can charge more for calling and internet data. Now it has to be seen whether Vodafone-Idea can survive even after a huge loss. Or the company may then have to make an official announcement to close itself.

RELATED NEWS