AGR case: Analysts upbeat about DoT review but Vodafone-Idea remains uncertain

MUMBAI : Brokerages have positively viewed the Supreme Court’s decision allowing the Department of Telecommunications (DoT) to evaluate the proposal submitted by telecom operators for paying the adjusted gross revenue (AGR) dues.

While analysts expect emphasis on some upfront payment of AGR outstanding, even if a 20-year staggered plan is allowed, they think DoT is better placed to evaluate telcos’ proposal.

While other telecom operators are in a better position to pay the dues, analysts say that even a 20-year payment plan is likely to stretch Vodafone Idea’s resources. It will not be able to compete with Airtel and Jio for relevant network and technology investments in the future.