The Indian mobile industry will consolidate further if the government does not offer a material relief on AGR liabilities, regulatory levies and potentially a floor on pricing. A ‘no material relief’ scenario would be an industry-structure-altering one. Indian wireless industry would consolidate further in case the government does not offer a material relief on…the AGR (adjusted gross revenue) case liabilities other aspects like recurring regulatory levies, deferred spectrum payments and potentially a floor on pricing, Credit Suisse noted that Vodafone Idea faced “another operationally weak quarter” and that the government relief measures are “key to sustain“.The telecom industry has been hemorrhaging, with combined losses of listed mobile firms surpassing ₹1 lakh crore in the just-ended quarter. Last week, India’s two leading telecom operators Vodafone Idea and Bharti Airtel reported a combined loss of ₹74,000 crore for the second quarter ended September 2019, mainly on account of statutory dues arising from the recent Supreme Court order on AGR. The Department of Telecommunications had shot off notices to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court. The DoT has given option to telecom operators to clear all the dues on self-assessment basis.

(The Hindu)