BENGALURU, Sept 19 (Askume) – India’s Supreme Court on Thursday rejected requests by telecom companies including Vodafone Idea (VODA.NS) and Bharti Airtel (BRTI.NS) to recalculate the amount of licence fees they pay to the government.
The long-running problem has eroded debt-laden Vodafone’s cash flow and threatened its survival in India’s telecoms market, which is dominated by Airtel and Reliance Industries (RELI.NS) .
Here is a chronology of events leading up to the latest decision:
2019: The Supreme Court of India orders telecom companies to pay $13 billion in dues based on adjusted gross revenue , increasing the amount owed by the companies to the government.
Vodafone said it would seek at least $4 billion in payment relief from the federal government , with a lobby group warning of a catastrophic scenario for the industry.
Airtel and Vodafone have increased prices and have asked the Supreme Court to review its decision.
2020: Supreme Court of IndiaThe companies’ petition seeking a review of the 2019 decision was rejected . The government ordered the workers to be paid their dues immediately, a day after the Supreme Court threatened to initiate contempt proceedings against the companies and officials .
Supreme Court asks telecom operators to pay dues within 10 years , companies have to pay 10% of dues by March 31, 2021.
2021: Non-executive chairman Kumar Mangalam Birla resigns from Vodafone, sending Vodafone shares tumbling and raising concerns that Indian wireless operators may not be able to escape the government bill.
Banks led by State Bank of India (SBI.NS)The Indian government has been asked to give more time to debt-ridden Vodafone Idea to pay taxes and spectrum charges .
A few days later, India’s federal cabinet approved a bailout package for the cash-strapped telecommunications industry , including a four-year moratorium on dues.
2022: Vodafone approves conversion of dues and interest related to spectrum auction portion into equity in January .
A month later, the Indian government ordered Vodafone to convert its dues of Rs 16,133 crore into equity.
2023: Telecom companies filed a petition in September asking the Supreme Court to recalculate the dues.
2024: Vodafone will launch a share sale of Rs 180 billion and will use the money to expand its 4G network, build a 5G network and pay taxes.
It has also issued shares worth Rs 2,458 crore to Nokia and Ericsson to raise funds .
