Telecom Reforms: How Realistic Will the Impact be on Vodafone Idea?

In a significant move on 15 September, the Centre top-uped the telcos by a providing a four year moratorium on their due payment as part of its latests reforms.

The move comes as a big relief to the financialLY starved industry, especially to Vodafone Idea and Bharti Airtel which are two of the hardest hit telcos. In short, these reforms provide the telcos four more year to pay their adjusted gross revenue (AGR) and spectrum dues and will kick in from 1 October.

While the telcos will also have to pay interest on the four year deferral of payments, they have the option to convert the due amount into equity at the end of four years.

But even though many experts have welcomed the reforms, the question which still looms in the air is if this is enough to help Vodafone Idea survive, which just six weeks ago was on the brink of collapse due to the burden of its exposure to the market.

Host and Producer: Himmat Shaligram

Guest: Sanjay Kapoor, former Bharti Airtel CEO

Editor: Shelly Walia

Music: Big Bang Fuzz

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