Bharti Airtel, Vodafone Idea share prices fall 3-15%; telecom stocks tumble after DoT asks telcos to clear AGR dues

telecom

Bharti Airtel, Vodafone Idea share prices fall 3-15%; telecom stocks tumble after DoT asks telcos to clear AGR dues

Telecom stocks came under pressure on November 14 after the Department of Telecom (DoT) had issued notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court, according to an industry source.

The DoT has given option to telecom operators to clear all the dues on self-assessment basis.

Bharti Airtel share prices were down over 3 percent intraday on November 14 and was the top Sensex loser while Bharti Infratel tanked close to 8 percent following the notice.

Vodafone Idea share prices plunged over 16 percent following the news while the company had been in news around the buzz that the company might exit India operations.

The apex court upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the DoT.

As per the court, all revenues – except for termination fee and roaming charges – will be a part of the AGR. Telcos argue that non-telecom, non-core revenues should not be a part of the AGR.

In the next two weeks, the telecom department will seek the Cabinet’s nod on the panel’s proposals, the official said. Vodafone’s decision to halt further investments in India has also given rise to concern, the official added. According to several reports, Vodafone Idea and Bharti Airtel may file a review petition.

According to an internal estimate prepared by the DoT, total dues on the telecom service providers arising out of SC order are around Rs 1.33 trillion.

As per DoT’s estimate, liability of Bharti Airtel Group stands at Rs 62,187.73 crore, Vodafone Idea at Rs 54,183.9 crore and BSNL and MTNL at Rs 10,675.18 crore.

At 09:42 hrs, Vodafone Idea Limited was quoting at Rs 3.08, down Rs 0.62, or 16.76 percent. It has touched a 52-week low of Rs 2.90. Bharti Airtel was quoting at Rs 355.00, down Rs 13.50, or 3.66 percent. It has touched an intraday high of Rs 363.20 and an intraday low of Rs 354.55.

News Source: Moneycontrol

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