What are AGR dues and how it threatens Vodafone-Idea’s very existence

India’s telecommunication network is the second largest in the world with more than a billion subscribers. But the prevailing situation of telecom companies is alarming.

Vodafone-Idea last week reported widening of losses to Rs 6,438 crore in the October-December 2019 quarter against Rs 5,004 crore in the same period a year ago. The company earlier reported a massive net loss of Rs 50,922 crore for the three months ended September 30, 2019, the highest-ever in a quarter by an Indian company.

This month, Bharti Airtel also reported December-quarter loss of Rs 1,035 crore. The December Q3 scorecard marked the third straight quarter of losses for the company, which had logged a net profit of Rs 86 crore a year ago.