New Delhi, Mar 17 (PTI): The telecom department’s proposal to allow telecom companies pay adjusted gross revenue (AGR) dues in 20 years will improve their cash flow, and the decision to raise tariff by mobile operators will help in resurrecting the financially stressed sector, industry body COAI said.
”We are very pleased with the Department of Telecom’s submission before the court to give 20 years time to telecom operators for paying adjusted gross revenue dues, which will help in reviving the industry,” COAI Director General Rajan S Mathews told PTI. The Centre moved the Supreme Court on Monday seeking approval of its formula to allow telecom companies to pay their AGR dues in annual instalments for over 20 years to avoid impact on the economy.
A bench of Justices Arun Mishra and M R Shah directed that the Centre’s application be listed before the same bench which had given the October 24, 2019 verdict for payment of AGR dues, amounting to Rs 1.47 lakh crore, owed by telecom companies.
When asked that many telecom companies’ licence will expire before 20 years, Mathews said that the operators are interested in buying 5G spectrum which will extend validity of their licence provided they get relief on the same.
”When you talk of 20 years then these operators are intending to buy 5G spectrum at some point of time. There is an effort on DoT’s side that there is more competition in the market,” Mathews said.