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Opinion poll on Telecom – Supreme AGR ruling, Jio’s move on IUC & more…

OPinion Poll on Telecom

Participate in this biggest opinion poll on the Telecom sector by sharing your views & share it with others, in order to make it more effective.

Let’s have a look at the whole matter.

Recently we have seen unprecedented uproar in India’s already bleeding Telecom sector. In the very recent past of 2 months, this all started by these series of events:

  1. On 9th October 2019, Reliance Jio announced that it will not bear the IUC (Interconnect User Charges) and later by announced the revised tariffs. As per new tariff plans, consumers will have to bear the IUC charges.
  2. On 24th October 2019, the Supreme Court ruled in favor of the Government and upheld the Government’s definition of AGR (adjusted gross revenue). As per this verdict, telecom companies will have to clear the dues of up to Rs. 92,000 Crore in three months. Vodafone-Idea has been hit hard by this SC decision, as they will have to pay around Rs. 54,000 Crore rupees.
  3. On 12th November, Vodafone CEO threatened the government about its exit from India. K.M. Birla along with Vodafone CEO met senior government officials for government relief.
  4. On 19th November, all three telecom operators announced that there will be a price increase in the coming days.

Meaning of acronyms & relevance:

AGR: Adjusted Gross revenue

Supreme Court ruled in favor of the wide definition of AGR, which means that it includes the total revenue, before discounts from both telecom & non-telecom services.

While, as per telecom companies, AGR should include the revenue only from core-telecom services, and not from non-telecom services (dividend, interest earned & profit on sale of investment or asset).

IUC: Interconnect User Charges

While making a call to the network of other telecom providers, companies have to pay to them for the cost of the call in terms of per-minute charges.

Let’s participate in this poll…

  • Question of

    How do you see Reliance Jio’s move to pass-on the IUC tariff to consumers?

    • This is ethically wrong, as Reliance Jio has broken the promise made by Mukesh Ambani, that Reliance Jio will never charge for voice calls.
    • That’s fine. Reliance Jio can’t help it, due to increasing operational cost & competition. Telecom secotor is already bleeding.
    • It’s not a big deal, we can pay it comfortably
  • Question of

    Will Supreme Court’s ruling on AGR might prove the last nail in the coffin of telecom companies like Vodafone-Idea?

    • Yes. This SC verdict might kill the telecom companies. Government should come forward ASAP, else not only Vodafone-Idea, but entire industry, government and entire maket will suffer heavily.
    • No, earlier these companies looted the hard earned money of tax-payers & done fraud with govrnment on AGR payment. Now they must be at the receiving end.
  • Question of

    How you react to this entire situation?

    • I support Government & ask them to collect the dues from all companies
    • I ask government to give relief to telcos, as in case of any shutdown of business, India may face another slump. Government should see the much bigger picture.
    • I don’t understand the whole issue. I just want to be a spectator.
  • Question of

    If there will not be any relief from government on AGR, how will you support the company/companies?

    • I will support the most bleeding company like Vodafone-Idea, by opting for their services.
    • I will support the one, who delivers best services.
    • No, I won’t support anyone, as companies deserve the place, where they are today!

What do you think?

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