Former finance secretary Subhash Chandra Garg

Vodafone-Idea is sitting on the sting of precipice- to get into the ditch of chapter any day, in response to former Finance secretary Subhash Chandra Garg.

Garg in a weblog titled ‘Rebuilding Telecom Business in India’ mentioned that the Indian telecom enterprise is now damaged.

“While the telecom service has become almost universal in the country and the prevailing tariffs in India are possibly the lowest globally, the businesses which deliver these services are quite broke. The telecom business is in bigger crisis that it was in 1998. Vodafone-Idea is sitting on the edge of precipice- to get into the ditch of bankruptcy any day,” he wrote.

Garg opined that the disaster shouldn’t be restricted to AGR associated points. “The crisis is much larger and deeper.”

“First, Telecom business- voice and information both- is headed in direction of changing into a duopoly (Jio and Airtel) with the remaining two players- Vodafone-Idea and BSNL-MTNL hurtling in direction of eventual shutdown, which could as properly be an abrupt collapse,” Garg mentioned.

The unused spectrum of bankrupt Reliance and Aircel, huge fund infusion in BSNL and MTNL, and no present in 5G are different points that making a disaster within the sector, in response to Garg.

On AGR, the previous secy has suggested the government to supply telcos a one-time settlement scheme to pay the principal due quantity as per the AGR definition. “Alternatively, appoint a Board for Vodafone-Idea by ousting current Board on the lines of action taken in case of ILFS and DHFL and secure a moratorium of some time on servicing of loans and government dues.”

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