AGR order to push telecoms to raise tariffs: Supreme Court

New Delhi: The Supreme Court order on Friday directing telecom companies to settle their AGR dues by March 16 will create uncertainty on their operational sustainability, especially on Vodafone Idea, which will push them to raise tariffs by 20-25% to remain afloat, Acuite Ratings & Research Limited has said.

“The SC order directing the telecom companies to settle the pending AGR dues by March 17 puts further uncertainty on their operational sustainability, particularly that of Vodafone Idea. The latter’s ability to pay an amount of over Rs 55,000 Cr by the stipulated date is uncertain given its current financial flexibility,” said Suman Chowdhury, president, Acuite Ratings. (IANS)

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