Dues from telcos: Govt on a sticky wicket as spectrum value erodes

Whichever way the adjusted gross revenue (AGR) case concerning telcos goes, the ultimate loser will be the government. This is because the value of spectrum which is with the operators currently, their main asset – of course, on lease from the government – has diminished.

If an operator like Vodafone Idea does not get to pay its AGR dues of Rs 58,000 crore in deferred installments of 15-20 years as it has sought, it may have to file for bankruptcy and then the government stands to lose over Rs 2 lakh crore. The value of liberalised spectrum with Vodafone Idea currently – for the balance licence period – stands at around Rs 98,206 crore based on the latest reserve price worked out by the Telecom Regulatory Authority of India (Trai) for the next round of auctions.