Telecommunications companies violated court orders to provide revenue sharing (AGR). The Department of Telecommunications, which does not take appropriate action against the companies, does not respect the court order. The Delhi Supreme Court has said that telecom companies and the Central Telecommunications Department have dishonored the court.
The court directed the directors and top executives of the telecommunications companies to appear at the next hearing and explain why the AG failed to make this payment within the stipulated time. Similarly, officials of the Central Telecommunications Department were present.
In the wake of this, the telecommunication department yesterday ordered the telecommunication companies to pay arrears to Nalli Rau.
After the order was issued, the share price of Vodafone ID fell 22.22 percent to Rs 3.50. The Supreme Court has directed AGR to pay the balance due tonight and the rest by March 17. Vodafone faces a severe crisis.
In licensing telecommunications companies, the government has to pay a certain amount based on its revenue. Telecom companies including Bharti Airtel and Vodafone Idea to the government. 1.47 lakh crore to be paid. On October 27, the Supreme Court ordered that the payment be made by January 27.
Subsequently, Vodafone Idea, Airtel and Tata Telecommunications filed separately to review the Supreme Court’s judgment. The Supreme Court dismissed the Amman. On January 26, the companies asked the telecom department for a time when they were unable to pay the dues. The telecommunications department has announced that it will not take action against the companies until a final verdict is reached.
Although the Supreme Court yesterday criticized the telecom department’s move, the telecom department withdrew the notice. The next hearing of the case was adjourned to March 17.
Vodafone Idea has Rs 5 crore, Airtel has Tk 1,686 crore. Geo entered the telecommunications industry in 2016. So very little of the company was owed. Geo paid on time. Because other companies have huge sums of money. They are facing severe financial crisis.
Airtel has raised money for AGR. However, Vodafone Idea is struggling with insufficient funding. In this context only Jio and Airtel companies are working in the telecommunications industry. Experts also point out that this is not the right trend.
Vodafone Ideas today released its third quarter financial report. Vodafone Idea lost a net loss of Tk 6,453 crore in the third quarter ended December 31, 2011. 50,898 crore for the September quarter.
The revenue of the quarter was up 2.5 percent to Tk 1.5 billion. The market value of Vodafone Idea fell to Rs 9,884 crore yesterday, down Rs 2.5 crore.