The current troubles facing the Indian telecom sector has been rightly termed as unprecedented. Dues, which have all accumulated over years have now taken shape of a huge mountain and with SC giving the latest reprimand-mixed-caveat ordering operators to pay within March 17, for Vodafone Idea, it’s now seems no other option but to close operations. 

What led to this mess, certainly needs deep deliberations for the sake of learning lessons in light of the ever-evolving subject of business management in general and telecom in particular especially in Indian context. But more than this, the immediate work in hand is to search for a solution since it concerns saving the entire sector and not just one or two service providers alone.      

There are hot debates with SOS flowing in rapid succession from the beleaguered duo of Bharti Airtel and Vodafone Idea to central government. So far that have transpired, Bharti Airtel owes over Rs 36,000 crore, while Vodafone Idea   approximately Rs 53,000 crore as     AGR (Adjusted Gross Revenue) dues. The centre of ‘dispute’ has been the AGR and there were much ‘interpretations’ and ‘misinterpretations’ of this term both by government and telecom operators that led to knocking of the legal doors. But the apex court’s verdict coming in October 2019 actually meant an enlarged volume of dues, a substantial portion  of which is the interest on principal amount(s) to be compulsorily paid by the above two. But, it’s no secret that giving their current financial health arising out of loss making spread over a solid stretch, it’s very difficult for them to cough them out and the news of the perceived inevitable i.e complete     closing down has flown well beyond industry circle to become the talk of the common people too. This has sent jitters, limited not to the telecom sector alone as because there will be rippling effect that will encompass the entire economy doubtlessly. Analyses are going on all over with new findings each day as to what it would mean if the worst happens. The numbers are mind-boggling to say the least. A 30+ crore subscriber base of Vodafone Idea will be wiped out overnight and lakhs of jobs/businesses that are intrinsically linked with this entity, somehow or the other will lose their earnings by way of salaries or commissions. If monopoly is the most hated word in any business ecosystem, a duopoly is no less worse. And the current developments is only taking the once booming telecom sector towards that.

The only wish now is that a solution is reached by striking a balance by complying the SC order and also ensuring overall sustainability of the sector. For the sake of a true ‘Digital India’ the quicker it comes the better. 

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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