Questions for 2020: Telecom becomes a duopoly?

NEW DELHI: Likely, if Vodafone idea gets no relief. Vodafone Idea chairman Kumar Mangalam Birla recently warned the struggling telco would be forced to shut shop if no government relief is forthcoming on its AGR-linked statutory dues.

The loss-making telco is hit hardest by a recent Supreme Court verdict – that backed the government’s wider definition of adjusted gross revenue (AGR) – and faces Rs 53,039 crore of statutory dues it needs to clear in about a month.

So will the new year hasten further consolidation and ring in a two-player telecom market?

The answer is yes, if Vodafone Idea doesn’t get relief on its AGR dues from the government or judiciary. Especially as there has been a steady fall in the company’s customer and revenue shares amid lower comparative 4G capex spends.