After $13 billion levy ruling, India’s telecom sector pivots on government aid

by   |  VIEW 207
After $13 billion levy ruling, India’s telecom sector pivots on government aid

On Thursday, the 28th of November 2019, the Indian Government of PM Narendra Modi of ruling Bhartiya Janata Party, had won a hard-earned dispute over telecom fees, seizing a monumental victory, as billions of dollars in levies which had turned in to debts, appeared to have become too large to bear for two of the mobile network carriers of the nation’s much monopolized telecom sectors.

On top of that, followed by the landmark ruling, Vodafone Idea Ltd., India’s biggest network operator by number of users, seemed to be shivering over a storm-swept backdrop, while its parent company, Vodafone Ltd. had called the situation critical, as the carrier had been caught up in a debt-burden of $3.9 billion.

Meanwhile, Bharati Airtel, the third-largest network operator in India, was saddled with $3 billion in fresh payment due following the ruling and was quoted saying that the decision casted fresh doubts on its ability to remain operational.

Besides, following reveal of the ruling, a number of industry analysts alongside executives said that there had been only one solution left for the debt-ridden mobile network carriers, a significant sum in financial aid, as casting further clouds on Vodafone Idea and Bharati Airtel’s future, a head of research at Samco Securities, Umesh Mehta said earlier on Thursday (November 28th), “If the government does provide some measures, there is still some chance for (Vodafone Idea) to continue as a going concern. It all depends on what kind of relief measures the company will get. ”