SC announced the verdict on staggered payment of AGR dues
SC has allowed 10 years timeline for payment of AGR dues starting from 1st Apr 21. Further, it ordered telcos to pay 10% upfront fee. Both VIL/Bharti have paid more thus would not require any additional payment.
SC agreed that the issue of spectrum sale is to be decided by NCLT.
Int rate for staggered payment is not confirmed. Govt could provide loans to support telcos in making AGR payment.
This could still not be the end of the road in the AGR case, as Telcos could file review and curative petition for removing SUC charges which could reduce liability by one third.
The verdict is positive for both Bharti and RJio as they are not required to pay for the acquired spectrum of Videocon, Aircel, and RCOM.
Bharti/VIL annual payment would be INR39b/75 at 8% int and would reduce to INR26b/INR50b in case of no int.
Bharti could manage with FCF of INR100b while it would be difficult for VIL with annualized EBITDA of INR60b.
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SC has allowed 10 years timeline for payment of AGR dues starting from 1st Apr 21. Further, it ordered telcos to pay 10% upfront fee. Both VIL/Bharti have paid more thus would not require any additional payment.
SC agreed that the issue of spectrum sale is to be decided by NCLT.
Int rate for staggered payment is not confirmed. Govt could provide loans to support telcos in making AGR payment.
This could still not be the end of the road in the AGR case, as Telcos could file review and curative petition for removing SUC charges which could reduce liability by one third.
The verdict is positive for both Bharti and RJio as they are not required to pay for the acquired spectrum of Videocon, Aircel, and RCOM.
Bharti/VIL annual payment would be INR39b/75 at 8% int and would reduce to INR26b/INR50b in case of no int.
Bharti could manage with FCF of INR100b while it would be difficult for VIL with annualized EBITDA of INR60b.
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